Boutique property developer Arthaland Corp. has teamed up with Japanese real estate giant Mitsubishi Estate Co. Ltd. (MEC) to develop its two-tower office condominium hub Savya Financial Center in Arca South.
The two firms agreed to create a joint venture that would be 60 percent owned by Arthaland and 40 percent by MEC, according to Arthaland’s disclosure to the Philippine Stock Exchange.
With a market capitalization of some $24 billion, MEC is one of the largest real estate developers in Japan with a substantial portfolio of properties mainly in the Marunouchi central business district of Tokyo. The deal with Arthaland will be MEC’s first venture in the Philippines.
The joint venture will in turn hold a 50-percent stake in Savya Land Development Corp. (SLDC), owner of a property in Arca South, Barangay Western Bicutan, Taguig City, which will be developed jointly with an adjoining property registered in the name of Arcosouth Development.
This development will become Savya Financial Center which will cater to the business process outsourcing (BPO) market and other locators. Under the terms of the partnership, Arthaland will take the lead in managing the operations of the project while MEC will offer its expertise to improve the project’s value.
The board approved the proposed merger of SLDC with Arcosouth, with SLDC as the surviving entity.
Launched in early 2019, construction is already underway for the Savya Financial Center—a premium office development with retail component.—DORIS DUMLAO-ABADILLA