Federal Land Inc., the real estate arm of GT Capital Holdings Inc. of the Ty Group, has formed a joint venture with Japan’s Normura Real Estate Development Co. Ltd. to develop township projects across the country.
GTCAP said in a disclosure to the stock exchange Monday Nomura Real Estate would invest $324 million (P16 billion), or equivalent to a 34-percent stake, in the new joint venture with Federal Land.
The new company, to be called Federal Land NRE Global, Inc., will initially develop four properties with a total land area of 250 hectares. These properties in Metro Manila and Cavite province will have a 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 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,” said Nomura Real Estate chair Eiji Kutsukake.
Nomura Real Estate is Japan’s second-largest real estate developer in terms of condominium unit turnover as of 2020, and the fifth biggest in consolidated sales.
“We are very delighted to bring our partnership with Nomura Real Estate, Japan’s top five developers, to greater heights.” said Federal Land chairman Alfred Ty.
“We intend to provide relevant real estate solutions that increase value over time and leave a positive mark for generations by building sustainable communities with distinct Japanese style and infused with Filipino sensibility,” said Ty.
Nomura Real Estate president and representative director Daisaku Matsuo said the company would introduce advanced technologies and expertise in the Philippine market.
The joint venture is 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.
Federal Land in 2017 also teamed up with Nomura Real Estate and Isetan Mitsukoshi Holdings Ltd. to develop a $400-million retail and residential complex in Bonifacio Global City.
Shares of GT Capital on Friday rose 0.4 percent to P560.
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