Sep. 03, 2021
Participating in logistics real estate development business in the US
The Sumitomo Corporation Group will enter the logistics property development business as part of its real estate business in the US. In June 2021, with US developers and other parties, Sumitomo Corporation of Americas (SCOA) committed to invest 24 million US dollars (approx. 2.6 billion yen) in two logistics facilities located close to points of consumption in Dallas, TX. Starting from this investment, our Group will expand investment in the logistics property development business in the US.
In the US, as in Japan, the logistics real estate market is continuously expanding on the back of the rapid development of the e-commerce sector, and it is expected to continue growing for years to come. In particular, Dallas, along with the adjacent city of Fort Worth, is favorably located to provide easy access to other regions of US and Latin American countries, making the city a major transport and logistics hub.
As such, Dallas represents a district where demand for logistics facilities will increase in the US, which is likely to see its population grow steadily in the future. Through this investment, we will meet soaring demand for logistics facilities required by logistics service providers such as retailers and distributors.
With the know-how derived from the Group’s logistics real estate development business (SOSiLA series) in Japan and continuing investment, we will seek to meet rising demand for logistics services in the US.
Sumitomo Corporation started to engage in the real estate business in 1919, when its predecessor company, The Osaka North Harbour Company Limited, launched a port development project. Over the more than century-long period since then, we have advanced into various real estate markets. We first entered the US real estate market in the early 1980s through investments in office buildings, and then we have gradually expanded the business to handle other categories, specifically, rental housing, residential land development and fund origination.
We will continue to strive to accelerate our US and other global real estate business development while maintaining a solid position in the Japanese market.