Mitsubishi Corporation (MC) is pleased to announce that it has reached an agreement with Surbana Jurong (SJ) to establish a new joint venture. SJ is a wholly owned subsidiary of Temasek Holdings (“Temasek”), a Singapore government affiliated investment company. The new joint venture will focus on urban development projects in Asia.
MC and SJ will establish the 50-50 joint venture in Singapore following approval from the relevant authorities. The joint venture will operate in Asian countries in which the two companies already have substantial experience, particularly in Myanmar and Vietnam but also in other markets such the Philippines, Indonesia, India and Sri Lanka. The joint venture will begin by investing USD 500 million to acquire assets of up to USD 2.5 billion in aggregate over the next five years, making additional investments over time or inviting third-party investors as it takes on larger-scale projects.
In emerging Asian countries, there is an increasing demand for urban development and improved infrastructure due to rapid economic and population growth. The new joint venture will primarily engage in urban development projects that build transportation infrastructure while at the same time targeting areas surrounding transportation hubs for developing urban real estate solutions such as retail outlets, offices, apartments, hotels and hospitals.
SJ originally began by developing public housing and industrial estates in Singapore, then utilized its global network to deliver successful projects for over 70 years in more than 40 countries including Myanmar, Vietnam and India. For its part, MC has built up a wealth of expertise in the real estate business by developing an array of assets ranging from industrial complexes and warehouses to commercial facilities and condominiums, not only in Japan, but also in South East Asia, China, the United States and other markets around the world.
Although MC’s real estate business previously focused primarily on developing and selling individual real estate assets, the company will be making use of its comprehensive strengths and drawing on its capacity to adopt a holistic view across numerous industries to execute future urban development projects.
Pooling the collective know-how and track records of both companies, the new joint venture will work to deliver high-quality urban development projects that meet local needs and contribute to economic development in emerging countries while at the same time keeping in line with MC’s aim of simultaneously generating economic, societal and environmental value.