DAIBIRU, a member of the Mitsui O.S.K. Lines Group have formulated the new Daibiru Group Medium- to Long-Term Management Plan 2035 “BUILD NEXT.” begins in fiscal 2023.
The previous plan stated five priority strategies: 1) investment in high-end office properties in central business districts (CBDs), 2) expansion of investment targets, 3) improvement of overseas businesses, 4) investment to enhance the competitiveness of existing assets, and 5) enhancement and expansion of facility management businesses (non-asset based). Over the course of the plan, Daibiru acquired or partially acquired the Otemon Tower/ENEOS Building, the Otemachi 1st Square building, and other top-tier office buildings located in CBDs; made its first venture into the Sapporo area; took forward steps in Australia, including participation in a development project; and made steady progress in reconstruction plans for the Midosuji Daibiru Building and the Yaesu Daibiru Building. Thanks to these efforts, the investment plan under Medium-Term Management Plan (Fiscal 2018–2022) was achieved successfully.
In October 2023, during the period of Daibiru Group Medium- to Long-Term Management Plan 2035 “BUILD NEXT.” the Group will celebrate its 100th anniversary. In light of this milestone, the plan has set the year 2035 as its goal and the vision and direction of Daibiru’s management towards its next 100 years.
The office leasing business, which is the Group’s main business, has reached a major turning point due to the COVID-19 pandemic. In addition, we are in a time that companies are expected to increase their corporate value by resolving social challenges. In this situation, we will use the strengths that the Daibiru Group has built up over the past 100 years and utilize our new medium- to long-term management plan to embody our corporate principles “Constructing buildings, creating towns, pioneering the new era.”
According to the new management plan “BLUE ACTION 2035” formulated by the Mitsui O.S.K. Lines Group in March, the real estate business is positioned as one of the non-shipping, stable and profitable businesses covering the highly volatile shipping market. Through the implementation of this plan, the Group will strive to enhance the corporate value of the Mitsui O.S.K. Lines Group and contribute to the realization of its group vision.
1.Name of plan: Daibiru Group Medium- to Long-Term Management Plan 2035 “BUILD NEXT.” “Constructing buildings, creating towns, pioneering the new era”—delving deeper and taking on challenges to face the next 100 years
The Daibiru Group’s vision for 2035 (approximately 10 years from now) is outlined by items (1) and (2) below. 2035 Vision
(1) Achievestablegrowthintheofficeleasingbusinessanddrivegrowthhigherbydiversifyingassettypesand businesses, creating towns that will fill people with greater enjoyment and pride.
(2) “Pioneer a new era” by creating towns and new value, working with customers, as well as local and global society, to resolve social issues.
3.Quantitative targets (target KPIs)—Please refer to page 2 of the accompanying document #1 for details. Fiscal 2035 Profit before income taxes: ¥25.0 billion
Estimated total assets: ¥1.0 trillion (estimated total investment amount of ¥700.0 billion during the period of the plan)
4.Overall Strategy and Action Plan See Appendix, page 3. (1)Business Strategies
1Domestic Business Strategy
(i)Acquire new properties,(ii)Rebuild and renovate existing properties, (iii)Investigate expansion of asset
types, (iv)Engage in redevelopment and town creation 2Overseas Business Strategy
(i)Expand investments in current target countries, (ii)Carry out investments in new target countries, (iii)Conduct new overseas investments (methods and initiative),
(iv)Collaboration with Mitsui O.S.K. Lines, Ltd. (MOL)
3New Business Strategy
(i)Create new businesses, (ii)Expand non-asset business, (iii)Diversity business model
(2)Catalysts for Promoting Strategies
1Synergies with MOL, 2Environment and sustainability、3DX
1Tenant relation(leasing capabilities), 2Pursuit of safety and security, 3Financial structure, 4Daibiru’s organizations, systems, and governance, 5Development and education of human resources