August 07, 2016 at 11:35 pm
Jenniffer B. Austria
Federal Land Inc., the real estate unit of conglomerate GT Capital Holdings Inc., is in talks with three foreign groups for possible joint venture partnerships in the development of two major mixed-use projects.
Federal Land president Alfred Ty said in a recent interview the company was interested in forming partnerships on a project basis, as foreign partners could transfer technology and introduce innovations in projects.
“There is a lot of exciting discussions on the property development. A lot of foreign investors are interested for joint venture partnership. Federal Land, unlike the other property developers, we have more open mind regarding foreign ventures because we like to introduce innovations,” Ty said.
“We are just waiting to sign [the agreement] so we can announce,” he said.
Ty said these deals would likely be finalized before the end of the year.
Ty said foreign investors were interested in investing in the domestic property market because of the country’s young population, the English literacy of the people and the growth potential of the Philippine economy under the new administration. “They are very confident and supportive,” he said.
Ty said foreign investors were particularly keen in the company’s 40-hectare property in the Bay Area in Pasay City called Metropolitan and its 11-hectare, well-masterplanned township project in Bonifacio Global City called Veritown.
Federal Land earlier teamed up with Orix Corp. of Japan to develop the 66-story Grand Hyatt Hotel at Bonifacio Global City.
Federal Land also forged a joint venture with SM Development Corp, the residential unit of Sy family, in July to develop a high-end residential tower at Makati central business district.
The 3,400-square-meter property will be developed as a high-end residential development.
“This is the last piece of land along Ayala Ave. It will be the most luxurious residential development within the central business district,” Ty said.
Final details of the project are expected to be released within the month.
Ayala Land announced last month its most luxurious residential development, a twin-tower ultra high-end residential at the former site of Mandarin Hotel.
Units are sold at P300,000 per square meter. The biggest unit, measuring 1,600 square meters, was sold for a record $10 million (P477 million).