Daiwa Securities Group Inc., Japan’s second-largest brokerage, is setting its sights on Australia for its first foray into the agricultural sector abroad. This move is part of a broader strategy to enhance its presence in Australia’s real estate and renewable energy markets. Chief Financial Officer Kotaro Yoshida announced that the firm is exploring investment and lending opportunities with value-added produce growers and mid-sized property developers, aiming to address a gap between Australia’s major banks and non-bank lenders.
The push into Australia is driven by CEO Akihiko Ogino’s goal to increase the firm’s overseas income by approximately 40% in the coming years. This expansion follows Daiwa’s prior investment in the venture capital division of Australia’s national science agency.
Yoshida highlighted Japan’s persistent farm labor shortage as a catalyst for agricultural industrialization, which could serve as a model for technological advancements in Australia’s fresh produce sector. Daiwa is considering direct investments in Australian farms or providing loans to facilitate growth. Yoshida expressed hope that successful ventures in Australia could lead to collaborations with Japanese companies and further expansion.
The firm also plans to continue focusing on lending and advisory services in the clean energy sector, utilizing its team of five employees in Sydney and Melbourne. Chairman Seiji Nakata previously indicated that Australia’s robust demographics and rapidly growing pension pool were key factors in Daiwa’s expansion strategy.
Through its private investment branch, Daiwa PI Partners Co., the firm has already supported Main Sequence Ventures, the venture capital arm of Australia’s science agency, which has invested in innovative companies such as plant-based meat producer V2 Food.
