Joint venture expected to build milestone developments that combine Filipino sensibility and Japanese efficiency

As the world gradually recovers from the downturn caused by the health pandemic, new opportunities for growth, partnerships, and expansions are opening up for businesses that have not only survived these past two years, but have thrived by being crisis-ready and forward-looking. 

One of the bright spots in the Philippine economy is how the real estate industry was able to navigate—and survive—the crisis. Filipinos have realized the importance of homes and the advantages of purchasing one from a credible developer.

Speaking of credibility in the real estate industry, the name Federal Land, Inc. towers above all. For 50 years, Federal Land continues to create innovative and well-built property developments such as residential homes, commercial and retail spaces, modern office buildings, world-class hotels, and integrated communities. 

Federal Land, Inc. is a wholly-owned subsidiary of GT Capital Holdings, a listed major Philippine conglomerate, whose investment holdings include Metropolitan Bank & Trust Company (Metrobank), Toyota Motor Philippines Corporation, Toyota Manila Bay Corporation, Toyota Financial Services Philippines Corporation, Sumisho Motor Finance Corporation, GT Capital Auto and Mobility Holdings, Inc., JBA Philippines, Inc., Premium Warranty Services Philippines, Inc., Philippine AXA Life Insurance Corporation, and Metro Pacific Investments Corporation.

Sensing the renewed vigor and feeling the palpable energy as the world anticipates a post-pandemic recovery, Federal Land is gearing up for more exciting projects and launching prospects with its newest partner, Nomura Real Estate Development Co., Ltd. from Japan. This partnership will bring forth a new company, which will be called Federal Land NRE Global, Inc.  It is set to start operations in April of 2022. 

“Federal Land NRE Global, Inc. promises to deliver unparalleled excellence by developing a new urban lifestyle, creating value, and sustainable growth. The joint venture is expected to bring milestone developments that mix Japanese inspiration with Filipino sensibility,” said Mr. Alfred V. Ty, Federal Land Chairman.

A Partnership of Equals

This partnership between two giants in their own countries couldn’t be more timely and auspicious. Both have changed the skyline of major cities with iconic landmarks and transformed the lives of families with quality homes.  

On the part of Federal Land, it has a solid track record and 50 years of experience and will provide the partnership with the necessary local market knowledge. Federal Land is also backed by the credibility and strong reputation of GT Capital Holdings and its conglomerate of well-established component companies, providing the partnership with the essential resources such as an existing organization structure, network, and customer database.

“We are happy to say that Federal Land is proud of its partnerships with leading global experts as it provides the opportunity for the company to operate on a global scale. With this partnership, Federal Land will reassess and realign strategic plans to focus on the priorities and requirements of Federal Land NRE Global, Inc.,” said Ty.

On the other hand, Nomura Real Estate Development Co., Ltd. is one of the core companies of the Nomura Real Estate Group with 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 turnover as of 2020 and the fifth largest in consolidated sales.

“Nomura Real Estate will introduce advanced technologies and expertise localized for the Philippine market. 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.

Bringing the Best Practices 

The partnership allows Nomura Real Estate to bring its best practices in construction, architecture, customer service, human resource, etc. It will introduce relevant real estate solutions and advanced technologies anchored on its expertise in innovation and technology localized for the Philippine market.  In return, Federal Land employees will be exposed to the work efficiency, discipline, and drive for excellence the Japanese are known for.

“With the combined strength of two leading real estate companies, Federal Land NRE Global, Inc. will raise the bar for property development in the country by introducing new Japanese construction technology and relevant real estate solutions that leave a positive mark for generations,” said Ty.  “Federal Land's track record and local experience will be combined with Nomura Real Estate's expertise in Japanese design, efficiency, innovation, and attention to detail.” 

Choosing Nomura Real Estate as a joint venture partner is courtesy of an invitation from GT Capital Holdings’ late chairman emeritus George S.K. Ty.  A bold visionary, he was recognized in Japan for strengthening economic relations between the two countries.

After a dinner with key executives of GT Capital Holdings led by vice-chairman Alfred V. Ty, Nomura Real Estate officials noticed and felt firsthand the energy emanating from BGC North. They looked around and saw that BGC was so progressive. They asked, what is this place? So Ty started explaining that this is the new development, this will be the new Manila. That was how it all started.

From that conversation, Sunshine Fort was born, a joint venture forged in 2017 by Federal Land, Nomura Real Estate, and Isetan Mitsukoshi Holdings Ltd., Japan's largest department store group. 

The Seasons Residences is the first project of the partnership between the three companies, which will be home to the first Mitsukoshi Mall in the country and is set to open in the second half of 2022. 

A Commitment with a Vision

This 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.

Nomura Real Estate will be investing US$324 million (approximately P16 billion pesos), representing 34 percent of the total capital investment of the new company.

Federal Land NRE Global is also expected to create at least 6,000 job opportunities within the first five years of operations, such as administrative, engineering, and construction-related roles.

Initial projects in Metro Manila, Cavite, and Cebu show the commitment of this new joint venture company, Federal Land NRE Global, to put its footprint in the Philippine landscape and show everyone its vision to enhance and modernize the Philippine skyline. They say that two heads are better than one, and in this case, two of the best real estate companies are bringing their best in this one new company.

Enhancing Investor Confidence

This strategic partnership was recognized by no less than the Office of the Executive Secretary, citing that it will not only benefit the company but the whole economy and generate more jobs.

“I witnessed how Federal Land, Inc., and its parent company GT Capital Holdings, grew into a pioneering landholdings company since its foundation. 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,” said Executive Secretary Salvador C. Medialdea.

“With these in mind, the Philippine government expresses it gratitude and will consistently 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 added.

Finance Secretary Carlos G. Dominguez also congratulated Federal Land, Inc. for its "successful joint venture" as the partnership "furthers cements the Philippines' status as a premier investment destination in the region."

"We see this strategic partnership contributing to the overall progress of the Philippine economy. This will help bring in more business opportunities in the country, create thousands of quality jobs, promote innovation, and contribute to mitigate the effects of climate change with its commitment to build sustainable communities and smart cities."