Federal Land, Inc., the real estate arm of GT Capital Holdings Inc., has formed a P48-billion joint venture with Nomura Real Estate Development Co., Ltd., Japan's second largest real estate developer.
Under the joint venture agreement, Nomura Real Estate will be investing $324 million, approximately P16 billion. Nomura 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.
The Nomura investment represents 34 percent of the total P48 billion capital investment of the new joint venture firm Federal Land NRE Global Inc. The Ty-owned owns 66 percent of the joint venture, which envisions to permanently redefine the Philippines' real estate market through class-leading, advanced township developments.
“This new company, Federal Land NRE Global, Inc., promises to deliver unparalleled excellence by developing a new urban lifestyle, creating value, and sustainable growth,” Federal Land said in a statement.
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. It is scheduled to start operations in April 2022.
"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," said Nomura Real Estate Chair Eiji Kutsukake.
He added that, “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.” "Today marks a major milestone in the 50-year history of Federal Land. 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." said Federal Land Chairman Alfred V. Ty.
Ty added that, "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."
Founded in 1957 in Tokyo, Japan, Nomura Real Estate engages in residential development, commercial property development, building leasing, and architectural design businesses across Japan, with business expansions in China, Vietnam, Thailand, and the Philippines.
"Nomura Real Estate will introduce advanced technologies and expertise localized for the Philippine market," said Nomura Real Estate President and Representative Director Daisaku Matsuo.
He noted that, “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.” The joint venture is expected to bring milestone developments that mix Japanese inspiration with Filipino sensibility.
It differentiates itself from other developers with its push for smart cities, the presence of Japanese retail concepts, and its client-first mindset. Ultimately, it aims to create value in townships with sustainable growth.