Property developer Mitsubishi Estate Co. said Tuesday it has entered agribusiness as part of efforts to remodel its businesses for future growth, and plans to produce cherry tomatoes with high sugar content.
The company is planning to start growing the tomatoes in June at greenhouses in Chiba Prefecture under a joint venture established last month with Organic Soil Co., a Tokyo-based agricultural start-up.
The joint venture, Mec Agri, will cultivate and sell the premium tomatoes year-round at prices twice as high as normal varieties, aiming for annual production of about 80 tons and sales of ¥120 million ($1.12 million) by March 2020.
Capitalized at ¥400 million, 90 percent of the joint venture is owned by the developer and the remainder by its partner.
Mitsubishi Estate plans to sell the products at supermarkets in the Tokyo metropolitan area as well as to residents of condominiums it has developed.
The company will also supply the tomatoes to restaurants and host food events in the Marunouchi business district in central Tokyo, where there is a cluster of buildings developed by the company.