SINGAPORE (Oct 16): Mainboard-listed Frasers Property is working with Hitachi Asia to drive digital transformation in the real estate industry in Asia Pacific over the next five years.

The two companies have signed a memorandum of understanding (MOU) in a collaboration involving an investment of up to $50 million each.

According to the MOU, the 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, the MOU will also see Frasers Property and Hitachi Asia potentially co-develop and invest in new services.

In a press release, Hitachi Asia says it has been working closely with the Frasers Property group and Japanese financial institutions to develop a new multi- generational approach to provide technology and Infrastructure as a Service (IaaS) solution for the real estate industry.

Both parties will draw upon their strengths and resources to jointly explore ways to future-proof Frasers Property group's current property portfolio in a sustainable manner.

"We are excited to collaborate with Frasers Property and work with a partner who shares our belief in contributing to a sustainable society," says Kojin Nakakita, Hitachi’s vice president and executive officer in charge of regional strategies for Asia Pacific.

“We will draw on our operational technology and information technology expertise to jointly develop new go-to-market solutions and improve the lives of people and happiness with Frasers Property,” adds Nakakita, who is also chairman of Hitachi Asia and Hitachi India.

"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,” says Panote Sirivadhanabhakdi, Group CEO of Frasers Property.

Shares in Frasers Property closed 2 cents lower, or down 1.1%, at $1.75 on Wednesday.