It's not just malls anymore.

Nikkei Asia reports that Takashimaya, the Japanese corporation best known for its retail operations, is turning to property development outside of Japan to make up for sagging mall business amid the pandemic.

One of these projects is at Starlake, a new urban area on the border of Tay Ho and Tu Liem districts in Hanoi, where Takashimaya is investing US$12.5 million in a K-12 school in partnership with Edufit International Education, a Vietnamese company.

According to the news source, the Japanese firm plans to spend about US$190 million on overseas investments in the next few years, mostly in real estate, and the Starlake project is the first time that Takashimaya will be involved in a foreign property from land acquisition to operation.

It will also work to develop both commercial and office spaces within Starlake from 2022 to 2025, in addition to two other large projects in the capital. Furthermore, a number of mixed-used properties that Takashimaya bought in Hanoi and Saigon last year will be renovated, while the company aims to leverage its connections with Japanese brands to bring in unique tenants.

While it is not clear how Takashimaya's commercial properties in Vietnam are faring, in Japan, they accounted for less than 20% of the company's total profit in 2019, before the COVID-19 pandemic wreaked havoc on retail businesses globally. Property development, meanwhile, generated roughly 40% of operating profit, Nikkei adds. 

In other Japanese retail news, at the end of last month Muji, the popular homeware and clothing brand, opened its largest Southeast Asia store in Saigon's Parkson Saigontourist Plaza. 

[Image via Ahomes]