GT Capital Holdings Inc. is open to a joint venture partnership with foreign and local property developers to transform a 600-hectare property into a mixed-use development in Cavite province.
The holding company of the Ty family reported last week that it agreed to sell back its 51-percent stake in mass housing developer Property Company of Friends Inc. in exchange for 702 hectares, including 600 hectares within Lancaster New City in Imus and General Trias, Cavite worth P20 billion.
GT Capital president Carmelo Bautista said during an analysts’ briefing that of the 702 hectares, roughly 600 hectares are located within LNC, 90 hectares in Belleforte Estate also in Cavite. The rest of the properties are located in Santolan, Quezon City, Shaw Boulevard in Mandaluyong City and Carmona, Cavite.
Bautista said the prime properties in Santolan and Shaw Boulevard would be developed by real estate arm Federal Land Inc.
He said for the 600-hectare LNC property, the company was open for joint venture partnership with local or foreign partners.
Federal Land earlier formed several joint venture partnerships with local property developers including Ayala Land and SM Development Corp.
It also has existing joint venture partnerships with Japan’s Nomura Real Estate Development Co. Ltd. and Isetan Mitsukoshi Holdings Ltd. for the development of Sunshine Fort Landmark, a P20-billion retail and residential complex in Bonifacio Global City.
Bautista said the Cavite property would be master planned as a mixed-use estate offering commercial and housing developments targeting the middle-income market.
He said the property is now more suited for the middle-income market. “The area is no longer suitable for affordable. Forcing the issue of affordable will not optimize the upward potential of the area,” he said.
Bautista said the property is also best suited for master-planned development because the ongoing infrastructure projects around the area including the Cavite-Laguna Expressway, NLEx-SLEx Connector Road and the LRT Line 1 Extension could push land prices up.
He said that with the deal, Profriends could continue to develop their portion of LNC for affordable projects while GT Capital would pursue its plan for a mixed-use development.
LNC is a 1,600-hectare development covering the area of Imus and General Trias in Cavite.