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The Japanese Company, at 50, Invests in Binh Duong’s Real Estate Market

13 August, 2024

Mr. Shin Ogawa, representing Cosmos Initia, shared that the company focuses on developing affordable housing segments with convenient utilities and strategic locations at the eastern gateway of Ho Chi Minh City, facilitating seamless connections to various areas.

The representative of the TT Avio project’s development consortium revealed that partnering with a renowned Japanese enterprise elevates the project’s standards. Ideally located on DT743C Road in Tan Dong Hiep Ward, Di An City, Binh Duong Province, the project is nestled within an established residential area surrounded by major thoroughfares, including My Phuoc – Tan Van, DT743 connecting Belt Road 2 and Belt Road 3, Pham Van Dong Boulevard, and the extended routes of Metro Lines 1 and 3. Spanning an area of 17,450m2, the project comprises 2,000 apartments with an average area of less than 60m2 each. Notably, 80% of these units are priced below VND 2 billion per apartment.

In December 2023, the Cosmos Initia – TT Capital – Koterasu Group consortium debuted with a commitment to invest USD 150 million over the next five years in affordable real estate projects in Ho Chi Minh City and its vicinity. Their target is to introduce approximately 1,000 apartments to the market annually.

Project Launch Ceremony

Profile of the Japanese Company

Beyond financial investment, Cosmos Initia, with its 50 years of real estate expertise (a subsidiary of Daiwa House Group), will actively engage in the construction and design processes of the TT Avio project.

Daiwa House Group, with its extensive experience in the Japanese real estate market for nearly 70 years, boasts a charter capital of USD 1.26 billion. Their business footprint spans 24 countries worldwide, encompassing construction, design, and execution of civil housing, luxury apartments, hotels, factories, warehouses, and industrial parks.

In Vietnam, Daiwa House has collaborated on the Phu My Hung Midtown commercial apartment project, marking the first joint venture between Phu My Hung and a Japanese partner. In the hospitality sector, Daiwa House has developed Roygent Parks Hanoi (operational since 2018) and Nikko Hai Phong and Roygent Parks Hai Phong hotels (opened in 2020).

Regarding industrial parks, Daiwa House has established the Long Duc Industrial Park in Dong Nai Province, catering to Japanese businesses seeking factory rentals and production base expansion in Vietnam. Additionally, they have developed factory and warehouse projects in Long Thanh, Dong Nai, offering logistics warehouse services. Daiwa House also plays a pivotal role in connecting businesses aiming to expand their production bases with the DEEP C Industrial Park in Hai Phong. Furthermore, they have collaborated with WHA Group on a logistics base project in Minh Quang, Hung Yen, spanning over 70,000m2 with a total floor area of 42,330m2, providing logistics services to the Northern region.

Cosmos Initia, established in 1969 in Japan, was formerly known as Japan Recruit Motion Pictures Co., Ltd. In 1974, the company shifted its focus to real estate development and renamed itself Environment Development Co., Ltd. Subsequently, in 1985, it changed its name to Recruit Cosmos Co., Ltd., and its shares were traded on the OTC market in 1986. Cosmos Life Co., Ltd. was acquired in 1987, marking their foray into real estate management operations. Cosmos expanded internationally by opening a branch in Australia in 1990, venturing into the hotel and resort business. In 2004, their shares were listed on the JASDAQ Stock Exchange, and in 2006, the company was renamed Cosmos Initia. All shares were then transferred to Daiwa House Industry, and in 2013, Daiwa House Industry joined the Daiwa House Group.

2024 marks Cosmos Initia’s 50th anniversary in the real estate industry. Currently, the company is headquartered in Tokyo, with seven representative offices in Japan. Their international presence extends to Australia, the United States, and New Zealand. Cosmos Initia’s affiliated companies include Good Place Co., Ltd., Cosmos Life Support Co., Ltd. (engaged in real estate management operations), Cosmos Hotel Management Co., Ltd., Cosmos Australia Holdings Pty Ltd, and Cosmos USA Holdings, Inc.

Their real estate business encompasses residential, business solutions, and accommodation segments. As of now, Cosmos Initia has been involved in approximately 2,000 projects, totaling over 100,000 condominium units in Japan. In the fiscal year ending March 2024, they recorded sales of nearly JPY 125 million (approximately VND 22 billion). Their equity capital reached JPY 5 billion (VND 877 billion), and they employed 612 people.

Mr. Keisuke Muraoka, representing the Cosmos Initia consortium, highlighted that high-rise residential apartments are the company’s forte. “When considering real estate investment in Vietnam, we sought experienced and capable partners. With Ho Chi Minh City’s population exceeding 10 million, the supply of various housing types only amounts to about 300,000 units. In the last 2-3 years, the supply has been around 10,000 units annually,” he remarked. “A simple comparison reveals that Tokyo, with a population of 14 million, has a cumulative supply of 2 million units, with approximately 20,000 units added in the last year alone. This underscores the significant shortage of housing supply in Ho Chi Minh City’s market,” he added.

“During Japan’s high-growth period, marked by rapid urbanization, we focused on developing condominium apartments. We started in Tokyo, addressing the housing shortage there. Even in Japan, we have consistently targeted the mid-range segment. Building on this foundation, we aim to cater to practical home buyers in Vietnam as well. Hence, we have decided to focus on the mid-range segment,” shared Mr. Keisuke Muraoka.

Mr. Keisuke Muraoka

According to the Cosmos Initia consortium representative, the TT Avio project will serve as a cornerstone for long-term and continuous investment in Vietnam. With its price point at half the average of Ho Chi Minh City’s market and targeting a broad customer base, the project is poised for success.

Thu Minh