The excitement in the air is almost tangible with the birth of the formidable partnership between Filipino-owned Federal Land Inc. and Japanese real estate giant Nomura Real Estate Development.
Indeed, the country’s real estate stakeholders have reasons to pop the champagne bottles — or more appropriately, it’s a good time to open some bottles of saké.
The landmark joint venture, after all, is a testament to the strong investor confidence in the Philippine real estate market and in the country as a whole, under the leadership of President Rodrigo Roa Duterte.
The partnership has given birth to Federal Land NRE Global Inc., a company that would bring well-curated developments that are unique to the Philippine property market and one which would create tens of thousands of jobs for Filipinos — at least 6,000 job opportunities within the first five years of operations, alone.
A strong future
No less than President Duterte welcomed the newly announced partnership.
“My warmest greetings to Federal Land Inc. on its partnership with Japan’s Nomura Real Estate Development to create the new company, Federal Land NRE Global Inc.
“This development affirms the strong confidence of foreign investors in the country’s business sector and brings with it greater opportunities for our economic growth,” President Duterte said in a message addressed to Federal Land chairman Alfred Ty.
President Duterte also expressed confidence the partnership would create jobs and better environments for the Filipino people.
“As you pursue your initial projects in Metro Manila, Cavite and Cebu, I am confident that these will generate more jobs and result in more livable and productive environments for our people,” he said.
“It is also my hope that you will aim for developments that are more sustainable and mindful of the integrity of our local communities and ecology,” President Duterte added.
The government, he said, is one with Federal Land NRE Global in creating a better Philippines and a better tomorrow for Filipinos.
“Together, let us pursue a stronger future that is brimming with opportunities for all,” President Duterte said.
Enhancing investor confidence
Executive Secretary Salvador Medialdea likewise welcomed the newly-forged strategic partnership, noting that it will not only benefit Federal Land but also the whole country.
“I am also delighted to note that the new real estate company that resulted from this joint venture, Federal Land NRE Global Inc. already has projects in the pipeline that would surely generate more jobs in the country,” Medialdea said in a letter to Ty.
The Executive Secretary said he witnessed the growth of Federal Land and its parent company GT Capital Holdings.
“I am grateful that you continue to explore and venture into the expansion of your operations to contribute to the country’s economic growth and to enhance investor confidence,” Medialdea said, as he assured the joint venture partners of government’s continued support for such endeavors that would strengthen investor confidence in the country and create jobs for Filipinos.
“With these in mind, the Philippine government expresses its gratitude and will constantly endeavor to design, formulate and execute policies that would continue to foster a friendlier environment where enterprises like yours can thrive and conduct business with ease,” Medialdea said.
What Japanese businesses can offer
Ambassador of Japan to the Philippines Koshikawa Kazuhiko, for his part, said the joint venture with Nomura Real Estate Development, will be yet another showcase of what Japanese businesses can offer.
“I am extremely grateful that you have chosen to partner with Nomura Real Estate as a means for us to introduce and continuously expand what Japanese businesses can offer to the Philippine market,” Kazuhiko said.
He said through the initial projects in Metro Manila, Cavite, and Cebu, which will create sustainable communities and build a new brand through advanced urban development, the project will greatly support the economic recovery of both countries for business and employment promotion.
Policy reforms
“We sincerely hope that the recently enacted tax reforms and deregulation of foreign investments will contribute to the success of this project as well. We look forward to seeing these projects revamp the real estate industry in the coming years,” he said.
The good ambassador likewise shared in the excitement over the upcoming opening of The Seasons Residences.
“I hope this primary project will become an iconic luxury residential complex in Bonifacio Global City, with the cooperation of the 350-year long established and leading retail company of Japan, Mitsukoshi, as well as Nomura Real Estate’s high technological advancement when it comes to integrating comfort, convenience and safety with industrial style,” Kazuhiko said.
“I would again like to express my gratitude to the remarkable progress your company has made to strengthen the bilateral relations between Japan and the Philippines,” he also said.
The partnership
The partnership is a powerhouse joint venture that is sure to raise the bar for property development in the Philippines.
Federal Land, the 50-year old property company of Ty-owned listed conglomerate GT Capital Holdings and Nomura Real Estate Development, which is part of the 97-year old Nomura Group, the Okada-headquartered financial giant, have teamed up to form Federal Land NRE Global Inc.
Federal Land NRE Global will commence operations in April this year and will combine Federal Land’s track record and local experience with Nomura’s expertise in Japanese design, efficiency, innovation, and utmost attention to detail.
Economic growth, job creation
The joint venture also aims to create value in townships with sustainable growth, which would spur economic development in different communities in the country.
The formidable alliance’s capital investment will be a whopping P48 billion and is envisioned to permanently redefine the Philippines’ real estate market through class-leading, advanced township developments.
For its part, Nomura would be pouring in approximately P16 billion in the joint venture, representing 34 percent of the total capital investment of the new company.
Federal Land is behind innovative and well-built property developments such as residential homes, commercial and retail spaces, modern office buildings, world-class hotels, and integrated communities.
On the other hand, Nomura has a diverse range of real estate businesses, such as the development of residences, offices, retail facilities, logistics facilities, hotels etc.
It is the second-largest real estate developer in Japan in terms of condominium unit turnovers as of 2020 and the fifth largest in consolidated sales.
With this strategic alliance, massive capital investment and a pipeline of projects, Federal Land NRE Global will certainly bring more jobs for Filipinos, create better real estate developments in the country and help shape a better tomorrow for the Philippines.
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The article was originally published in The Philippine Star and written by Iris Gonzales.
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