MANILA, Philippines — Imagine a partnership of two giants, a homegrown Filipino propertydeveloper and a Japanese real estate company, which both belong to two mammoth conglomerates in their respective markets.
The result is a power couple of sorts, a powerhouse joint venture that is sure to raise the bar for property development in the Philippines.
This is exactly what will happen with the seamless fusion of Federal Land Inc., the 50-year old property company of Ty-owned listed conglomerate GT Capital Holdings and Japan real estate giant Nomura Real Estate Development Co. Ltd. (NRE).
The formidable partnership has given birth to Federal Land NRE Global Inc., a companythat would bring well-curated developments that are unique in the Philippine propertymarket.
Destiny’s child
PROUD TOWER Kameido Cross
Like most stories of union and togetherness, destiny played a role in this fusion.
After a dinner with the key executives of GT Capital Holdings led by vice-chairman Alfred V. Ty some years back, NRE officials experienced firsthand the palpable energy emanating from Bonifacio Global City North in Taguig.
For how could they not?
Anyone dining at BGC can experience a breathtaking view of the cityscape—glittering lights as far as the eye can see. It’s as if there’s a giant jewelry box that one’s senses can feast on.
The energetic vibe of the city is indeed infectious—alive without the mayhem; fun but classy; pulsating without the boisterous noise.
“They looked around and saw that BGC was so progressive. They asked, what is this place? So we started explaining that this is the new development, this will be the new Manila. That was how it all started,” shared Ty.
Gracing the partnership ceremony of Sunshine Fort are Takuya Matsuo, general manager of Isetan Mitsukoshi Holdings, Atsushi Ogata, executive officer for Nomura Real Estate Development Co., Ltd., Pascual M. Garcia III, former president of Federal Land, Alfred V. Ty, chairman of Federal Land, Taguig City Mayor Lani Cayetano; George S.K. Ty, Group Chairman Emeritus of GT Capital Holdings, Executive Secretary Salvador Medialdea, H.E. Kazuhide Ishikawa, former Japanese Ambassador to the Philippines; Eiji Kutsukake, Nomura Real Estate Development Chair and Toshihiko Sugi Isetan Mitsukoshi Holdings President.
NRE executives were swept away and from that fortuitous conversation, Sunshine Fort was born. It was a joint venture forged in 2017 by Federal Land, GT Capital Holdings, Nomura Real Estate Development and Isetan Mitsukoshi Holdings Ltd., Japan’s largest department store group.
The Seasons Residences is the first project of that partnership which will be home to the first Mitsukoshi Mall in the country and is set to open in the second half of 2022.
The successful development of The Seasons Residences and Mitsukoshi project in BGC is a testament to the long-term commitment of investing in the Philippines, signified through the joint venture with Federal Land.
That first partnership evolved into an even stronger joint venture. Thus, Federal Land NRE Global Inc. was born.
The Seasons Residences is a mixed-use development featuring upscale residences, curated amenities and the first MITSUKOSHI in the country.
To put it simply, Federal Land NRE Global, which is scheduled to commence operations in April 2022, will bring together Federal Land’s track record and local experience and NRE’s expertise in Japanese design, efficiency, innovation and the utmost attention to detail.
With this unparalleled partnership, one can imagine Japanese-inspired developments infused with Filipino sensibility; innovative smart cities just like in Japan that will bring to the Philippine market the newest trends and the highest standards of client-first mindset.
The joint venture also aims to create value in townships with sustainable growth.
Federal Land’s solid track record and 50 years of experience, for instance, provide the partnership with the necessary local market knowledge.
PROUD TOWER Kanamachi
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.
“The investment of the new company will definitely be a contributor to economic growth; generating local employment, increasing consumer spending, bringing new technological advances and knowledge transfers to the country. This kind of impact is what our late Chairman Emeritus George S.K. Ty dreamed about,” said Federal Land Chairman Alfred V. Ty.
On the other hand, the partnership will pave the way to harness NRE’s best practices in construction, architecture, customer service, human resource, thus adapting Federal Landemployees to the work efficiency, discipline and drive for excellence the Japanese are known for.
NRE has a diverse range of real estate businesses, such as the development of residences under PROUD brand, offices under PMO brand, retail facilities, logistics facilities, hotels etc.
It is the second-largest real estate developer in Japan in terms of condominium unit turnover as of 2020 and the fifth largest in consolidated sales.
“Rather than simply introducing Japanese technology to the Philippines as it is, Nomura Real Estate through Federal Land NRE Global, will adjust to the local needs and business practices of the Philippines and create products that resonate with the sensibilities of the people of Philippines and society,” said Nomura Real Estate Development President and Representative Director Daisaku Matsuo.
For the partnership, NRE will introduce relevant real estate solutions and advanced technologies anchored on its expertise in innovation and technology localized for the Philippine market.
“To adapt to market needs and provide products that are valued by the market and society – this is our reason for existing and it is a philosophy that has been at the core of our company since its inception,” Matsuo added.
The formidable alliance will have a capital investment of approximately P48 billion and is envisioned to permanently redefine the Philippines’ real estate market through class-leading, advanced township developments.
For its part, NRE will be investing approximately P16 billion in the joint venture, representing 34% of the total capital investment of the new company.
Moving forward, Federal Land will reassess and realign strategic plans to focus on the priorities and requirements of Federal Land NRE Global.
Finance Secretary Carlos Dominguez III extended his congratulations to Alfred Ty, saying that the partnership bodes well for the country’s path toward recovery.
“I congratulate Federal Land, Inc. for its highly successful joint venture with Nomura Real Estate Development. This partnership further cements the Philippines’ status as a premier Investment destination in the region,” Dominguez said in a letter to Ty.
The strategic partnership, the Finance chief said, will contribute to the overall progress of the Philippine economy.
“This will help bring in more business opportunities to the country, create thousands of quality jobs for our people, promote innovation and contribute to the collective effort of mitigating the effects of climate change with its commitment to build sustainable communities and smart cities.
Additionally, this joint venture will offer the Filipino people Japan’s distinctive brand of excellence that will surely redefine the Philippines’ real estate market,” Dominguez said.
Indeed, the partnership is a formidable one and promises nothing less than the best for the Philippine market.
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