Eiji Kutsukake —PHOTO FROM NOMURA REAL ESTATE
Ty family-led Federal Land Inc. has teamed up with Japanese property developer Nomura Real Estate Development Co. to create a P48-billion local joint venture company that aims to deliver world-class township developments.
Nomura will invest $324 million (about P16 billion) for a 34-percent interest in the new company, which will be called Federal Land NRE Global Inc., Federal Land’s parent conglomerate, GT Capital Holdings, disclosed to the Philippine Stock Exchange on Friday.
The disclosure said the joint venture, set to begin operations this April, was 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,” it added.
4 areas of development
For the initial project, the new venture 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.
“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 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,” Nomura Real Estate chair Eiji Kutsukake said on Friday.
Nomura Real Estate is the the second largest real estate developer in Japan in terms of condominium unit turnover as of 2020 and the fifth largest in consolidated sales.
Founded in 1957 in Tokyo, Japan, Nomura Real Estate has interests in residential and commercial property development, as well as building leasing and architectural design businesses across Japan, with business expansions in China, Vietnam, Thailand and the Philippines.
For its part, Federal Land has a diverse portfolio of property development projects focusing on master-planned communities and residential developments. It also develops stand-alone residential projects, while commercial and retail properties are generally developed and leased to generate recurring income.
“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 chair Alfred Ty.