Nikkei: Retail giant Takashimaya poured money into real estate investment in Vietnam
After the main shopping mall business declined during the COVID-19 epidemic, Japanese retail giant Takashimaya turned to overseas real estate development, seeing it as the next growth engine. of the company.
According to Nikkei Asia, about 6 km from the center of Hanoi, a new urban area called Starlake (West Lake Urban Area) is being deployed.
Takashimaya is currently investing about 1.3 billion yen ($ 12.5 million) in building and operating a kindergarten to 12th grade school system at Starlake with Edufit International Education, an education company Vietnam.
In the next 3-4 years, the giant Japanese retailer plans to invest a total of about 20 billion yen abroad, mainly pouring into the real estate sector.
Starlake residential area in Hanoi is the first overseas real estate project that Takashimaya participates in all stages, from land acquisition to operation, Nikkei said.
Takashimaya will also develop commercial and office space at Starlake in the period of 2022 – 2025, alongside two other large-scale commercial projects in Hanoi. According to Nikkei, the giant Japanese retailer will renovate a number of mixed-use buildings it has acquired in Ho Chi Minh City and Hanoi.
A corner of Saigon Center commercial center, ie Takashiyama in Ho Chi Minh City. (Photo: Getty Images).
In 2016, Takashimaya opened the first shopping mall in Vietnam in Ho Chi Minh City with an estimated total investment of 25 million USD. Takashimaya also has good relationship with many Japanese brands.
The Japanese retail giant plans to exploit these advantages to attract tenants to company-owned buildings, differentiating from commercial centers built and operated by Vietnamese businesses. onions.
According to Nikkei, expanding into the real estate business is a top priority for Takashimaya, as the company’s commercial centers have recently faced stiff competition from online shopping and online shopping competitors. the number of tourists to Japan decreased compared to before the pandemic.
Malls in Japan account for less than 20% of Takashimaya’s total operating profit in fiscal 2019, despite contributing 80% of total revenue.
This is in sharp contrast to the real estate business, when in the same period, this segment generated about 40% of Takashimaya’s operating profit despite contributing less than 10% of revenue.
Malls in Japan and in the overseas market of Takashimaya are both expected to face many challenges from the pandemic in the future.
In addition to “attacking” abroad, Takashiyama also entered the field of real estate development in his home country of Japan. However, demand for office buildings and real estate has more growth potential in overseas markets.
In particular, Vietnam’s economy has grown dramatically over the past few years and GDP has grown by more than 7% for the second consecutive year last year. Thanks to the early control of the COVID-19 pandemic, Vietnam’s growth rate in the third quarter of this year was also more positive than that of other countries in the world.
Commenting on the new move, Mr. Yoshio Murata, Chairman of Takashimaya said: “Vietnam still has a lot of room for us to expand our portfolio in many areas in this country”.
Source: vietnambiz.vn – Translated by fintel.vn
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