Daiwa House Industry, Japan's biggest home builder, aims to raise US$1.4 billion in share issuance to finance a real estate development push which will help power the property sector.
Daiwa's move is seen as one of the indications of the seen rise in interest in real estate. The Osaka based firm said that they are investing an estimated ¥400 billion or US$4 billion in real estate investments over the next three years. These will be funded in part by the share issuance.
Purchases targeted by Daiwa will include distribution centers and other distribution facilities intended for leasing purposes.
The decision came after the government released a data that showed the rise in land prices in 53% in selected locations within Japan's major cities.
Asset managers said that this move is of no surprise and fits the latest financing trend.
General Manager for Chibagin Asset Management, Yoshihiro Okumura said, "This kind of deal does not strike me as a tremendous surprise, as several players in the industry are also ramping up operations to cope with the rise in demand in home sales-due in part to provisions in the sales tax law that make buying a home before the end of September more affordable."
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