Oct. 11, 2018
Investment in a master planned community development project in Houston, Texas
Sumitomo Corporation (Head office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has, through Sumitomo Corporation of Americas (Head office: New York, USA; General Manager: Shingo Ueno) (hereinafter collectively referred to as the “Sumitomo Corporation Group” or “the Group”), invested in a master planned community development project in Houston, Texas (“the Project”).
The Project will involve the acquisition of approximately 1,944 acres of land in Houston, Texas, USA for developing roughly 4,000 housing lots and commercial land of roughly 268 acres for schools and commercial facilities. The developed land will be sold to local homebuilders and commercial facility developers on a zone-by-zone basis. Development is scheduled to start in 2019 and sales to commence in 2020.
Houston is the major MSA (Metropolitan statistical area) of the Southern United States with a population of approximately 6.8 million, which is the fifth largest MSAs in the country. It is one of the American MSA with the highest growth potential, underpinned by ongoing significant population and employment growth. The Project site is located about 15 km north of George Bush Intercontinental Airport and near a business center that accommodates large companies. Thus, strong demand for housing is expected for this neighborhood.
The Sumitomo Corporation Group first launched residential land development projects in the United States in 1990. Since 2004, it has engaged in a large-scale residential land development project in Houston, Towne Lake. Under this project, the project company purchased 2,400 acres of land, which is comparable in size to Chuo-ku in Tokyo, and has developed a new community comprising approximately 468 acres of commercial land and 3,300 housing lots around a large lake, with pools, fitness centers, parks and other amenities for residents. The Group will undertake the Project by leveraging the expertise accumulated through the operation of the Towne Lake project.
The Sumitomo Corporation Group has a long history of real estate business in the United States. Since 1982 when it acquired its first office building in Manhattan, New York City, the Group has for about 35 years acquired, value added and sold office buildings (office building business), and engaged in master planned community development in Atlanta and Houston and multi-family apartment development mainly in the Southern United States (housing business). Moreover, in 2017 the Group embarked on the real estate fund business targeting properties in the United States for Japanese institutional investors, through Sumitomo Corporation’s wholly-owned subsidiary Sumisho Realty Management. The Sumitomo Corporation Group is now operating its real estate business centering on these three business lines.
The Sumitomo Corporation Group continues expanding its global real estate business mainly in the United States and Asia with a view to contributing to the development of local communities and industries and to the establishment of a foundation for comfortable and enriching lifestyles.
■Material issues for Sumitomo Corporation
The Sumitomo Corporation Group has defined the “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project should prove especially beneficial in “Contributing to the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles.”