Japanese construction contractors are embarking on overseas businesses other than construction contracts such as real estate investment, large-scale developments, and renewable energy with an aim to accumulate business know-how and diversify its portfolio.

Haseko Corporation announced in August that it will participate in the 292-unit housing development project in suburban Los Angels, the United States. Construction will begin in 2022, with completion slated in 2024. The US subsidiary of Takamatsu Construction Group has established a joint venture with a local real estate company to develop apartment buildings in a resort area in California, where many luxury properties are located.

Toda Corporation purchased an office building in Irvine, California, the first full-scale real estate investment in the country. Taisei Corporation acquired a majority of the rights to own two office buildings in Boston, Massachusetts, which has made the company’s first US real estate investment in 20 years.

The growing Asian market is also a promising target for Japanese construction businesses. In Hai Phong, Vietnam, the large-scaled hotel development "Waterfront City Project" was completed in March by Daiwa House Industry and Fujita. The total 39,814 square meters hotel is aimed at Japanese business travelers and domestic and foreign tourists.

Kumagai Gumi and Sumitomo Forestry launched a joint venture in Singapore to promote real estate development overseas. The 50,000 square-meter project of a high rise condominium and a commercial building to be developed in Jakarta, Indonesia is the first project of the company.

Toda Corporation has set Brazil as one of its new targets. It launched a project to construct offshore wind power plant in the northeastern part of the country. The total power output is 27.7 MW and is scheduled to start operation in July 2021. The company hopes "to expand to the real estate business in the future. (2020/09/09)