Bullet train operator is chugging into ASEAN property development
Bullet train operator is chugging into ASEAN property development
Next station, Southeast Asia
Kyushu Railway Company, one of the five Japan Railways (JR) firms running the world-famous bullet trains, is scoping out markets in Southeast Asia for its first real estate investment in the region.
“Southeast Asia offers huge growth potential for JR Kyushu,” Jr Kyushu chairman Koji Karaike told Bloomberg in an interview. “Whether it’s in terms of visitor numbers or investment opportunities, we’re looking to the region to help diversify and increase our revenue.”
The state-owned company revealed this pivot to Southeast Asia as the population in the eponymous island, Japan’s southwestern-most, goes on a decline.
More: Why condo sales in Tokyo crashed to 24-year low
To diversify its revenue streams, JR Kyushu has revealed an outlay of JPY80 billion (USD770 million) on non-rail projects in the next three years. The company looks to increase its non-rail sales to account for over 62 percent of revenues by 2019.
These plans come as the company prepares for its JPY416 billion (USD4 billion) IPO, part of the Japanese government’s overarching plan to privatise the JR firms. The IPO will issue 160 million shares owned by JR Kyushu’s parent company Japan Railway Construction, Transport and Technology Agency at share prices ranging from JPY2,400 (USD23) to JPY2,600 (USD25).
Read next: Where skiers go in Japan, land price increases follow
Source: Property Report