Ty-led Federal Land, Inc. announced on Friday that it had entered into a “strategic partnership” with Japan-based Nomura Real Estate Development Co., Ltd. to set up a P48-billion property company.
Nomura Real Estate will invest $324 million or around P16 billion, which represents 34% of the total capital investment of the new company, according to a stock exchange disclosure of GT Capital Holdings, Inc., the parent company of Federal Land.
Federal Land Chairman Alfred V. Ty called the joint venture as a “major milestone” in the company’s 50-year history.
“Our late founder, Dr. George S.K. Ty’s love for architecture has molded the company to expand its portfolio into delivering large-scale and quality developments. We are very delighted to bring our partnership with Nomura Real Estate, Japan’s top five developers, to greater heights,” he said.
“We intend to provide relevant real estate solutions that increase value over time and leave a positive mark for generations by building sustainable communities with distinct Japanese style and infused with Filipino sensibility,” added Mr. Ty, who is also chairman of GT Capital.
The new company, Federal Land NRE Global, Inc., will have an initial pipeline of residential, office, commercial, and industrial facilities.
“We have invested in a joint venture to accelerate business expansion in a rapidly growing market. We will build and aim for development here while promoting combined housing and commercial projects with Federal Land. We are committed to demonstrate the strengths of both companies through strong partnership, strategically favorable location, product differentiation, and the introduction of advanced added value,” said Nomura Real Estate Chair Eiji Kutsukake.
Federal Land NRE Global will start operations in April this year with an initial project incorporating four areas of land development spanning 250 hectares in Metro Manila, Cavite and Cebu.
“It is envisioned to permanently redefine the Philippines’ real estate market through class-leading, advanced township developments,” the disclosure read.
“Nomura Real Estate will introduce advanced technologies and expertise localized for the Philippine market. The group creates value through real estate development by leveraging its four strengths including a market-in approach that prioritizes living, working, and gathering; and a commitment to quality — which we shall present to the Philippine market,” Nomura Real Estate President and Representative Director Daisaku Matsuo said.
The disclosure described Nomura Real Estate as the second-largest real estate developer in Japan as of 2020 in terms of condominium unit turnover and the fifth largest in consolidated sales.
The firm is said to be involved in both residential and commercial property development, with expansions in China, Vietnam, Thailand, and the Philippines.
Federal Land holds interests in property development, banking, automotive assembly, and importation, among others.
At the stock exchange Friday, GT Capital shares rose P2.00 or 0.36% to P560 each. — Luisa Maria Jacinta C. Jocson
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The article was originally published in Business World.
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