Property giant Federal Land Inc. has its origins as a hobby of the late business magnate and Metrobank group founder George S.K. Ty.
Five decades later, the builder is betting its future on a sprawling partnership with Nomura Real Estate (NRE) Development Co. Ltd., one of Japan’s top developers, to bring Japanese technology and aesthetics to the Philippine property market.
The two real estate powerhouses teamed up to form Federal Land NRE Global Inc. (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 on Tuesday investments could reach roughly $2 billion in less than a decade.
Other local developers have expanded into townships, which typically refer to masterplanned communities 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 added.
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.
The initial four township projects will be located in along Manila Bay, Mandaluyong City, Cavite and Cebu.
The event on Tuesday was attended by top 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.
For his part, 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 on Tuesday.
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.
“FNG is not just a special purpose company on a project-by-project basis but a going concern company for a long-term business in the Philippines,” Kutsukake said. INQ