Nippon Telegraph and Telephone has 1,500 vacant buildings. (image via Liputan 6)

NTT To Redevelop Their Vacant Properties in Japan

Toska Dhia Andana
Business & Industry
Real Estate
Jul 14, 2019
2381
Owning thousands of vacant properties is not easy, even for a big company. Nippon Telegraph and Telephone revealed they have 1,500 office buildings across Japan, but they could not make profit out of those buildings. In other words, those building are vacant—left unoccupied. To solve this problem, NTT decided to make a new plan, that is, to redevelop these buildings.

On July 1, NTT Urban Solutions is established, which will be taking care of the group’s real estate business. NTT Urban Solution has two subsidiaries; NTT Urban Development and NTT Facilities. The group owns 7,000 telephone exchange stations and 1,500 office buildings, and most of the telephone exchange stations are located in the heart of smaller cities. This could make the redevelopment bring a lot of fortune to the group. One of the reasons why NTT’s properties left abandoned is due to digitalization. The other reason is because NTT used other developers for redevelopment, and the buildings were left unfinished.

However, the fact that population is shrinking and the competition is tougher in the real estate industry, it’s going to be a difficult journey for NTT. To tackle these problems, NTT Urban Solutions President Hiroshi Nakagawa stated that they are going to use expertise to take care of the development. One of the plans is to rebuilt a building in Sendai as a multipurpose complex, where offices for companies and facilities for researchers are available there.

On the same day, July 1, NTT launched NTT Ltd as well, which headquarters is located in London. The use of NTT Ltd is to help businesses and people, using their technology service.

Source: https://asia.nikkei.com/Business/Companies/Japan-s-telecom-giant-to-redevelop-8-500-idle-properties-nationwide

Japan , NTT , NipponTelegraphandTelephone , RealEstate , Development , NTTUrbanSolutions