Metro Manila (CNN Philippines, January 28) — Federal Land Inc. has set up a new development firm with Japan-based Nomura Real Estate, which is set to begin operations this April.
The GT Capital subsidiary on Friday said the Japanese property developer will invest about ₱16 billion — or 34% of total capital — of their new company: Federal Land NRE Global Inc.
"As their initial project, it will incorporate four areas of land development with a total area of about 250 hectares in Metro Manila, Cavite, and Cebu. These include an initial pipeline of residential, office, commercial and industrial facilities," Federal Land said on Friday.
The joint venture between both developers hopes to mix Japanese inspiration with Filipino sensibility, and ultimately aims for sustainable growth in townships, it added.
Federal Land chairman Alfred Ty welcomed the deal, calling it a "major milestone" in their company's 50-year history.
"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," Ty said.
Nomura Real Estate chair Eiji Kutsukake, meanwhile, said their move to invest in a joint venture hopes to speed up business expansion in what it calls a rapidly growing market.
"We will build and aim for development here while promoting a 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," he said.
Among Japan's largest property developers, Nomura Real Estate also has business expansions in the Philippines, China, Vietnam, and Thailand.
"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," said Nomura Real Estate president and representative director Daisaku Matsuo.
Shares of Federal Land's parent firm GT Capital last traded at ₱560 apiece on Friday — up 0.36% from yesterday's close.
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