Federal Land NRE Global Inc. (FNG), the joint-venture between the property giant and Japanese Nomura Real Estate Development Co., Ltd. (NRE), one of Japan’s top developers, is planning to bring Japanese technology and aesthetics to the Philippine.
Break out the sake. Federal Land, Nomura top honchos celebrate the JV. From left: Federal Land, Inc. President and COO Thomas Mirasol; Federal Land, Inc. Chairman Alfred Ty; Nomura Real Estate Development Co., Ltd. Chair Eiji Kutsukake; Nomura Real Estate Development Co., Ltd. Executive Officer Yusuke Hirano
At the formal announcement of the joint venture, Federal Land president Tom Mirasol revealed that the partnership will be working on a 25-year pipeline of projects in the various land banks of Federal Land, focusing on four areas—Manila Bay area, Mandaluyong, Cavite, and Cebu.
“We’re starting off (with) four estates with multiple projects,” Mirasol said. “Manila Bay is going to be 10 towers; Mandaluyong is going to be nine towers; Cebu, there’s a minimum three towers… all of these things have been planned for the next 25 years.”
Mirasol said the four estates will have a total area of 250 hectares which will offer to the market an initial pipeline of residential, office, commercial and industrial facilities.
He noted that the projects will create 6,000 job opportunities within the first five years of operations, such as administrative, engineering, and construction-related roles.
“My hope is that this 25- year plan might end up being a 15 -year plan because of the market reception,” Mirasol said.
Going beyond the usual township model
The two real estate powerhouses teamed up to form FNG, the vehicle that would develop a series of townships across the country, including a 100-hectare Japanese “smart city” in Cavite, and a mixed-use project along Manila Bay.
Federal Land chair Alfred Ty said could reach roughly $2 billion in less than a decade.
Other local developers have expanded into townships, offering a combination of residential, commercial and office projects, but Ty said FNG would go beyond this model.
“FNG is looking at offering more than live-work-play mixed-use townships,” he said. “We are considering blending logistics, institutional and industrial developments in our portfolio as well.”
“FNG is a marriage that speaks of shared values, shared aspirations, and complementary areas of expertise,” Ty explained.
Federal Land, part of the Ty family’s GT Capital Holdings conglomerate, contributed an initial 250 hectares of land to FNG. Nomura earlier invested $324 million into the venture for a 34 percent stake.
Building growth drivers outside of Japan
The event last week was attended by executives of Nomura Real Estate, led by chair Eiji Kutsukake and executive officer Yusuke Hirano, who said FNG marked the Japanese company’s largest overseas investment.
Kutsukake said the venture was in line with Nomura’s 2030 program to create growth drivers outside Japan.
“We have been expanding our business in the Philippines since it is one of the most important markets for us,” he said.
FNG follows an earlier tie up between Federal Land and Nomura for the The Seasons Residences in Bonifacio Global City.
The partnership included Japan’s Isetan Mitsukoshi Holdings Ltd., thus paving the way for the first Mitsukoshi retail center in the Philippines.
Nomura Real Estate Development Co., Ltd. is the largest developer in Japan in terms of condominium unit turnover and the fifth largest in consolidated sales. Their portfolio includes residences, offices, retail facilities, logistics facilities, and hotels.
Federal Land is the property arm of GT Capital Holdings, Inc. The firm develops residential homes, retail spaces, office buildings, hotels, and master-planned communities.
Visit The Seasons Residences website www.federallandproperties.info or email ktan0088@gmail.com to schedule a private viewing at the showroom located at 7th Avenue corner 34th Street, Grand Central Park, BGC.
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