Japanese construction giant Shimizu Corp. expanded its Southeast Asian footprint by acquiring Singapore’s Grandwork Interior, a specialist in luxury retail fit-outs. The transaction marks Shimizu’s first full acquisition of a non-Japanese Asian company.
While financial terms weren’t disclosed, industry sources estimate the deal value in the billions of yen. Grandwork, which reported revenue of S$97 million ($73.4 million) in 2023, serves high-end retailers including LVMH, Richemont and Kering across Southeast Asia.
The purchase reflects Japanese builders’ growing appetite for overseas expansion as they face headwinds at home. Japan’s construction sector struggles with a declining population and limited domestic growth prospects.
The companies previously collaborated on Singapore’s Changi Airport renovation. Shimizu said the acquisition would provide insights into new market segments as it diversifies beyond its traditional focus on Japanese government-backed infrastructure projects.
The deal follows a broader trend of Japanese contractors seeking growth abroad. The Overseas Construction Association of Japan reported that foreign orders jumped 12% to ¥2.29 trillion ($15 billion) in fiscal 2023, hitting a record high. In January, rival Kajima Corp. acquired a U.S. builder specializing in healthcare and education projects.
