Sumitomo Forestry, Kumagai Gumi team up in property projects in Asia
SINGAPORE, NNA - Major Japanese housebuilder Sumitomo Forestry Co. and Japanese construction firm Kumagai Gumi Co. have formed a joint venture in Singapore to explore property development projects in Asia.
They injected capital of around $40 million to launch SFKG Property Asia Pte. Ltd., with Sumitomo Forestry's Singaporean arm, Sumitomo Forestry (Singapore) Ltd., holding a 51 percent stake and Kumagai Gumi the remainder, according to a joint statement released Friday.
The establishment marks the first overseas arm under their collaboration, a Sumitomo Forestry spokesman told NNA on Friday.
As the duo's first joint overseas project, the venture will take part in a $150 million project developing a 35-story condominium and a 27-story commercial complex, housing a total of around 900 units, in the heart of the Indonesian capital of Jakarta. Sinarmas Land Ltd., a Singapore-based developer, and PT Alas Kusuma, an Indonesian plywood maker, will also participate.
The construction of the twin tower will begin in 2021, with completion scheduled for 2024.
Sumitomo Forestry and Kumagai Gumi have been collaborating in business since their partnership agreement in 2017, and both place overseas business as one of the growing sectors in their medium-term business plans. (NNA/Kyodo)