Global Cases

”Sumitomo Corporation quality” created by commitment to basic functionality and integrated strength --Condominium business

Japan / China

Real estate business as the origin of Sumitomo

Sumitomo Corporation's predecessor The Osaka North Harbour Company Limited was founded in 1919. Involved in development of the port area of Osaka among other projects, The Osaka North Harbour later changed its name to Sumitomo Real Estate Building Co., Ltd., and then to Nippon Engineering Co., Ltd., assuming its current appellation of Sumitomo Corporation in 1952. The company has been in business nearly 100 years now, and throughout this time the construction and real estate businesses have remained an important framework in the development of Sumitomo Corporation.

The condominium business got its first real start in Japan in the early 1960s. Sumitomo Corporation was quick to enter this industry, developing "Maison Nishinomiya," the Kansai region's first condominium, in 1964, the year of the Tokyo Olympics, and "Kugayama Heim," Sumitomo Corporation's first condominium in the Tokyo metropolitan area, in 1966.

As a pioneer in the industry, Sumitomo Corporation adopted methods now considered quite standard from an early stage, such as introducing a housing loan system, utilizing model rooms for sales, and planning maisonette-type dwelling units.

Located near Midosuji, Osaka's main street, CLASSY TOWER Yodoyabashi inherits the beauty of Taisho modernism architecture. (Osaka_City, Osaka Prefecture)

New "Classy House" brand launched in 2009

The condominiums sold by Sumitomo Corporation have long borne the brand names of "Heim" and "Haus" in the Tokyo area and "Maison" in the Kansai region. In 2009 these brands were unified into the brand name "Classy House" as a new step.

The designation "Classy" carries the connotations of "upscale" and "refined". The brand concept is a fusion of function (specifications as a residence) and beauty (a sense of design). The firm conviction that "comfortable living" and "comfortable on the eyes" are both important for quality of life is incorporated into this concept.

Sumitomo Corporation has thus far supplied about 56,000 units, mostly in the Tokyo metropolitan area and the Kansai district. Considerable time is spent on the site selection, design and construction of each and every property to provide a high-quality living environment.

"Classy House" provides a higher class of living through the fusion of function and beauty. This photo shows the entrance of the Classy House Yoga 1-chome (Setagaya Ward, Tokyo)

Total community development via inter-organizational collaboration

It is not rare for trading companies to have within their corporate groups an organization that undertakes housing projects. Feature of Sumitomo Corporation's housing business is that these functions are handled by an in-house business division rather than an independent company.

In recent years condominium development has been increasingly pursued as part of joint community development. Condominiums are built together with office buildings and retail facilities to form a "venue for living." Close collaboration between differing organizations is essential in joint development, and smooth coordination within a single company enables overall community planning inclusive of the condominium. This is one strength of the housing business operated by Sumitomo Corporation as Integrated trading company.

We believe that a comfortable life can be realized through the total community concept. This brings together various elements that are characteristic of each region, including environmental conditions in residential areas, access to shopping areas and distance from the nearest station. "THE TOKYO TOWERS" in Kachidoki, Tokyo and the Classy House Tsujido adjacent to the retail facility Terrace Mall Shonan were developed on the basis of this "total concept." Both were projects pursued through close horizontal collaboration among in-house organizations, including the Building & Overseas Real Estate Dept., the Retail Facilities Dept., and the Housing & Urban Development Dept.

"Classy House Tsujido" (Fujisawa City, Kanagawa Prefecture) was completed in 2011 by Sumitomo Corporation together with "Terrace Mall Shonan" as a joint urban improvement project for the area in front of Tsujido Station (JR Tokaido Line)

Boosting quality of life through collaboration among Group companies

Another special feature of Sumitomo Corporation is that collaboration with the Group companies, including Summit (a supermarket chain) and Jupiter Telecommunications Co., Ltd (J:COM; a broadcasting and communications business) can help enhance the quality of life for residents. Each year sees an increasing number of properties with immediate access to grocery shopping and properties standard equipped with such infrastructure as cable television, Internet and telephone service provided by J:COM.

After-sale administration/management of condominiums is the responsibility of Sumisho Tatemono Co., Ltd, another Group company. Thus, the Group has in place a structure to carry out the full spectrum of operations from the development phases of planning, design and construction to sales, administration and management, allowing it to maintain long relationships with customers who purchase condominiums. This, too, is one of the strengths of the Sumitomo Corporation Group.

CLASSY TOWER Higashi-Nakano houses a Summit supermarket. (Nakano Ward, Tokyo)

Meticulous attention to detail produces peace of mind and a sense of trust

Constituting the core of these comprehensive capabilities is ultimately the high quality of the housing units itself.

We are focusing more on basic housing functions than creating additional value from external housing conditions. We set extremely high design specifications and conduct rigorous screening when selecting partner companies to undertake the construction. By taking advantage of our procurement capabilities as a trading company, we provide partner construction companies with carefully chosen high-quality materials. We believe that our strict stance on basic housing functions and materials selection help foster peace of mind and a sense of trust among customers, both of which are strengths of our housing business.

Sumitomo Corporation is now setting out in earnest to develop condominiums overseas, starting in Shanghai, China, and will leverage the skills and experience in the development and real estate businesses cultivated since its founding in 1919 and uncompromising "Sumitomo Corporation Quality" to customers overseas as well.

Opus Park is a large-scale residential complex now under construction in the suburbs of Jakarta, Indonesia, and will include more than 1,000 apartment units, the largest in the region. Hands-on methods are employed in various aspects of the project, which is being undertaken by Sumitomo Corporation and other companies, including Japanese-style marketing using model rooms and training for sales staff.

April 2019

Keyword

  • Living Related & Real Estate Business
  • Japan
  • East Asia
  • Real Estate

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