What is the status of initiatives in each business?
Under the Fifth Mid-Term Management Plan (Fiscal 2020 - Fiscal 2022), we are implementing key initiatives for each business in line with the following matrix chart.
Custom Detached Houses
Implement three brand strategies
In addition to our mainstream mid- and high-end products, we will expand sales of top-grade products with higher specifications and strengthen the second brand by Sekisui House noie Limited.
Rental Housing, Architectural/Civil Engineering
Promote focused S and A area*1 marketing
In the rental housing, we will strengthen value-added proposals of rental housing to be supplied in S and A areas where we develop business and aim to be price leader by promoting the proposal of value-added products and promotion of 3- and 4-story properties. We are also strengthening corporate real estate (CRE) and public real estate (PRE) businesses*2.
*1：Areas in cities that the Company classifies as strategic locations for business development
*2：Businesses that propose effective uses for real estate owned by corporations (CRE) and by public organizations and administrative agencies (PRE)
Supplied Housing Business
Abundant, high quality supplied housing underpins stable growth
In the remodeling business, we are promoting a shift from conventional maintenance-type renovations to proposal-based renovations that offer lifestyle proposals and environment-based remodeling such as energy-saving renovations. In the meantime, we reinforce the sales structure and actively reach out the customers of Sekisui House detached and rental housing, leveraging a solid customer base with a cumulative total of 2.46 million units, while Sekiwa Construction companies handle remodeling for properties and condominium units not built by Sekisui House. As a group, we support every type of remodeling and our remodeling business is steadily growing.
Real Estate Management Fees Business
Achieve stable increase in revenues by increasing the number of units under management and maintaining a high occupancy rate.
In the real estate management fees Business, wholly owned Sekisui House Real Estate companies provide owners of Sha Maison rental housing with operation and management support. The number of units under management are increasing steadily, and the occupancy rate remains high, due to the supply of high-quality, distinctive rental housing and due to the implementation of the area marketing strategy. In real estate trading, we also intend to strengthen the real estate sales brokerage business.
Houses for Sale Business
We work to develop a superior community that can be passed on to the next generation in the forms of initiatives for planning and proposing not only individual gardens and external facilities but also integrated rows of houses and activities for supporting community development, adopting the concept of beauty that blooms with time in which attractions and value grow over the years.
Common Stage Miramachi
Common Stage Miramachi is a mixed-use redevelopment encompassing 400 lots for detached houses and community facilities on a 27 ha site formerly occupied by a spinning factory. The master plan was adjusted to accommodate roads, parks and other infrastructure. An ideal example of a compact mixed-use community, this project is designed to help revitalize the area.
We implement its thorough area-specific strategies and advance its brand strategies by integrating homebuilding knowhow gained through custom detached houses.
GRANDE MAISON Shin Umeda Tower The Club Residence
High-rise residence with a view to providing value for the next generation. Sky Terrace, an outdoor shared space rarely found in high-rise buildings, is on the 35th floor and exemplifies our commitment to high-quality comfort for residents.
Urban Redevelopment Business
Strengthen exit strategy by establishing a diversified REIT for office, commercial and residential investments.
Leveraging its community development know-how, Sekisui House also focuses on urban development which will provide the social infrastructure for a new age. We secure stable earnings from developed properties such as office and commercial buildings and rental apartments through disposals to Sekisui House Reit, Inc. sponsored by Sekisui House and listed in December 2014.
Start the global rollout of Sekisui House technologies
We currently do business in five countries other than Japan—the United States, Australia, the United Kingdom, Singapore and China—where we anticipate ongoing, steady growth in housing demand. We have shared strategies and built relationships with cooperating companies as product development partners in each country. However, because business practices and issues differ by area, we will implement strategies tailored to each in order to spread Sekisui House technologies worldwide.
We conduct the multifamily, homebuilding and master-planned community businesses in the United States in cooperation with outstanding local partners. In fiscal 2019, the multifamily business performed strongly. We will increase our emphasis on the homebuilding business as we work to further expand our business domains in the United States.
In Australia, we develop and sell residential land and condominiums. In 2010, we built a factory to establish a system capable of producing components suited to the local climate, landscape and needs. In addition, we will begin sales and rollout of the SHINKA House as a pilot ZEH house. SHINKA House can reduce electricity costs by 85%.
We made a full-scale entry into the U.K. housing market by forming a partnership with the government agency and general real estate company. Through the rollout of this business, we will help resolve the serious housing shortage in the U.K.
In collaboration with leading local developers, we develop condominiums for the lifestyles that local residents aspire to and building complexes that include commercial facilities and offices.
Mainly in the cities of Shenyang, Suzhou, Wuxi and Taicang, we conduct businesses including a townhouse business that builds on a track record of multi-unit residential complex projects and environmentally friendly housing under our own Sekisui House Yuqin brand, and a condominium business that creates world-class living spaces.