Hitachi Asia and Singapore-based Frasers Property have signed a memorandum of understanding (MOU) involving an investment of up to S$50 million ($36.6 million) each to collaborate and drive digital transformation in the real estate industry in Asia Pacific over the next five years.
The size of the addressable market for Asia Pacific, excluding Japan and China, is estimated to reach $82 billion by 2025, the two partners said.
According to the MOU, the two companies will explore opportunities to help accelerate digital transformation for the Frasers Property Group and the real estate industry, starting with Singapore, Thailand and Australia, and potentially co-develop and invest in new services.
The technical and commercial teams in Hitachi Asia, the Frasers Property Group and Japanese financial institutions have been working to develop a new “multi-generational approach” to provide technology and infrastructure-as-a-service (IaaS) solutions experiences in the real estate industry.
“We are excited to collaborate with Frasers Property and work with a partner who shares our belief in contributing to a sustainable society. Through Hitach’s Social Innovation Business, we will draw on our operational technology (OT) and information technology (IT) expertise to jointly develop new go-to-market solutions,” said Kojin Nakakita, vice president and executive officer in charge of regional strategies (APAC) for Hitachi, and chairman of Hitachi Asia.
“The real estate industry is rapidly evolving. That means we must find ways to redefine the experiences of our customers. Today’s announcement represents the first of many collaborations we are exploring to help accelerate digital transformation for Frasers Property,” said Panote Sirivadhanabhakdi, group CEO of Frasers Property.