“The next mission in construction business” From housing, the next objective is to give a second life to various business facilities.
With BIZ Livness, we are creating a regenerative and recycling society,
and a diverse future for working people.

In the summer of 2020, we conveyed to all employees that the General Construction Business was seriously committed to a business initiative that would later be named “BIZ Livness.”

Going forward we will strengthen “purchasing and resale,” “upgrades and renovations,” and “brokerage” services for business, commercial, and other facilities. With purchasing and resale, which are new initiatives, we will also handle other companies’ construction properties.

The reaction, however, was concern expressed in the question, “Can they really do that?” The issue was "Technical Verification." With old buildings, what if they don’t comply with laws and regulations? To what extent should the deteriorated parts be repaired? Compliance with laws and regulations is an absolute responsibility for both our corporate customers and us, and the General Construction Business carefully scrutinizes the risks and does not move until we are confident that everything is “okay.”

There was also the point of concern that building repurposing takes time and effort. This includes obtaining the diagrams from when the building was newly constructed as well as for its current condition, and based on these, we make up blueprints for things like renovation and facility upgrades. However, until you actually do the construction it’s unknown whether or not things are in accordance with the current diagrams. It was because of this high degree of difficulty that no one could take a first step.

Nonetheless, Horiguchi was a believer. “We have the technical skills of a ‘general contractor’ that undertakes outsourced construction. We have the expertise of developers who build companies, as well as the information capabilities to match the needs of selling and buying. With us being capable of doing both, we can grow new business.“

Horiguchi spent over a year to complete a purchasing and resales manual. Purchases are to be made after it has been determined that the building is safe and has secured compliance with the law. We propose a renovation plan tailored to the usage of the building, and then sell it after adding value unique to Daiwa House Industry, such as conversion to ZEB and tenant placement.

We have also established a framework in which we can support branches from across the country. From the division, Horiguchi and her team at the Promotion Office are the main drivers, and BIZ Livness staff grouped by building usage, such as logistics, medical care, and nursing care, and in technical groups for design, equipment, and construction, follow up with branches. The Legal Affairs Office also performs backup. The renovation work will be carried out by Daiwa House Reform and Design Arc,The company will draw on the strengths of Group companies such as Daiwa House Realty Mgt., which develops and manages commercial facilities, and the logistics facilities, etc. maintenance management company, Daiwa House Property Management and subcontractors.

Horiguchi travels Japan to lecture on the scheme and its practical duties at training and study sessions. Participants are increasingly voicing their forward-looking opinions, commenting, “I thought it would be difficult, but with the division’s support we can move forward.” “Today, construction costs are rising, and there’s also an emphasis placed on environmental considerations, so this is a plus for customers, and this is a time when we should be tackling this issue.” Horiguchi expressed her resolve, saying, “It will take years to get on track with this. Without the understanding of everyone, it won’t go well. So that’s why I’ll talk about this for as long as it takes.”

In our first BIZ Livness project, we purchased a factory, and while ensuring adherence to laws and regulations, changed its intended usage to a commercial warehouse, and started leasing it. We sold it having made it into a property with a high market price.

There were three customers involved. The seller was Toyoset, the tenant was Nippon Express, and the investment company Marimo Regional Revitalization Reit, Inc was the buyer.

It started when Tsuji of the Matsumoto Construction Sales Office made a walk-in visit to Toyoset. Later, on a repeat visit, Tsuji heard that although they had wanted to sell the years-old building at the factory together with the land, the idea suffered a setback on account of the COVID-19 pandemic.

Rental warehouses are few and far between here in Komagane City, Nagano Prefecture. There would certainly be demand if we could convert a factory into a warehouse. Tsuji proposed making a one-stop purchase of the building and the land.

At the same time, Tsuji went to have a talk with Horiguchi in the Promotion Office. This purchase and resale project would be a first trial for the General Construction Business. On top of that, the situation was complex as Nippon Express was leasing part of the factory. In order to purchase a building with tenants and proceed with construction for the change of usage, there are times when manuals, flows, and legal concerns must all be sorted out. Horiguchi’s role was to gather materials and other information to determine legal compliance and to cast various vendors as support members.

Following that, Toyoset commented with delight that “The speed at which Daiwa House Industry took action was astonishing. We had thought the sale would take three years, but it was completed in about six months. Financing has improved and that makes things easier.”

As for Nippon Express, they signed a long-term fixed-term building lease agreement. Due to the usage change, renovation work was conducted to create partitions for each 1,500 m2 parcel. We were able to complete the work without stopping operations by moving our gear each time to the section where the work was completed. Nippon Express recalls, “From an ROIC (return on invested capital) management perspective, it would have been difficult to build our own warehouse, and with the 2024 problem approaching, this was the best timing.”

The buyer, Marimo Regional Revitalization Reit, Inc, long considered a first-time acquisition of a significant number of logistics facilities. The First in our company such structure was of particular interest to investors, so they spoke of how cautious they were. “Being in charge of the construction management, Daiwa House Industry formulated a large-scale renovation plan, and also set up tenants, so from that sense of security we were able to quickly proceed with considerations,” they commented.

It was then that Tsuji from Sales expressed appreciation by saying, “This change of usage was an endeavor that our sales office had no experience with. With Ms. Horiguchi shepherding she showed us the way, involved the division and brought the company together. She was instrumental in helping us get across the bridge.”

After the Komagane Project came to fruition, success stories continued to emerge one after another. In the same Nagano Prefecture, the company purchased a factory that had been used for book shipping and other purposes, renovated it into a factory for electronic measuring instruments, and resold it. This project leverages the strengths of the Daiwa House Group, including the acquisition of a Location where there is a need, the company’s track record in semiconductor-related factories, and collaboration with Group companies that handle interior design and construction.

Having these success stories led to model cases, and motivated employees to aggressively take action. The cycle of revitalizing and recycling real estate stock has finally begun to gain momentum.

When launching a project, it’s necessary to have the involvement of human talent like Horiguchi who are entrepreneurial types. Horiguchi’s supervisor appraised her work, saying, “She performs her duties with incredible speed. She moves forward proactively, and takes a creative approach to a range of initiatives.”

Her colleague commented, “With two small children, she makes efficient use of her limited time. I definitely want to learn from her example.”

For Horiguchi, who thought that she would leave the company due to the COVID-19 pandemic, one of the reasons she continues on today is because, as she says, “I want to talk with confidence about my work to my kids.”

“Just as with the Daiwa House Industry founder, I’ve long felt that the significance of work is to ‘be useful in the world,’ and I‘ve been trying to accomplish this with the organization that is the company. However, after two maternity and childcare leaves and an inability to work well due to the COVID-19 pandemic, I began to question the evaluation I received from the organization and the lack of freedom with the way I work. So that’s why I jumped at the chance to launch BIZ Livness. I wanted to do work that is useful for someone. I want different work styles to be respected. Following that, I want to show my kids that I’m doing what I want to do.”

Come to think of it, Horiguchi has always worked with great passion for the things she sets her sights on. She constantly makes friends of people around her. In high school she was a member of the mountaineering club, and as an adult, this led to her climbing Mt. Kilimanjaro with people she had met. Standing at 5,895 meters, this is the highest mountain on the African continent. Horiguchi made the climb by walking through a desolate mountain desert landscape, in the cold of night along the path of a glacier.

Thinking back to mountain climbing, one could suppose that the BIZ-Livness of today is still around the first station. With the knowledge, means, and other preparations in place, we have finally begun the climb. Like the mountaineering club created with her colleagues, she now has more friends who will accompany her as she climbs the BIZ Livness mountain.

BIZ Livness is linked to the Daiwa House Group’s “Hopes for the Future” of a regenerative and recycling society. Deserts and glaciers can be crossed with friends. At the top of the mountain, there is sure to be a wonderful view waiting for you.