Federal Land, Nomura Real Estate Development to usher in new era in PH real estate
Written by: Amy R. Remo
It made an exceptional impression when it first brought its stamp of cutting-edge innovation, excellence, and Japanese tradition to the Philippines several years back.
Nomura Real Estate Development Co., Ltd., one of the largest property developers in Japan, had then partnered with Federal Land, Inc., a wholly-owned subsidiary of GT Capital Holdings, to create a premier, Japanese-inspired, four-tower residential development in the heart of a progressive business district here in the Philippines, together with Isetan Mitsukoshi Holdings Ltd.
This partnership enabled Nomura Real Estate to bring to the country the much celebrated ingenious Japanese innovations and timeless designs that are poised to elevate known standards of comfort, convenience and functionality of spaces.
This early, Nomura Real Estate showcased its prowess, alongside Federal Land’s expertise in creating well-built development, in their pilot project called The Seasons Residences, a mixed use complex featuring upscale residences, curated amenities, and the first MITSUKOSHI in the country.
Solid track record
Nomura Real Estate Group, which was founded in 1957 in Tokyo, Japan, traces its beginnings to a noble goal—to find meaningful ways to contribute to society through real estate. The company decided to direct efforts towards new town development and embark on the residential business to help solve Japan’s housing shortage—a serious social issue after World War II.
Following the success of its initial pursuits, Nomura Real Estate Group further diversified to the condominium business in 1963, followed by office development and related services such as property and facility management, and real estate brokerage.
Guided by its vision of creating “New Value, Real Value,” Nomura Real Estate Group has remained well attuned to the needs of a market, whose lifestyles and preferences continue to evolve.
Today, Nomura Real Estate remains to be that visionary that it has always been over the last six decades.
Thanks to its client-first approach which places priority on the people who live and spend time in its properties and its market-in approach which pinpoints customer needs, Nomura Real Estate is able to build cities that “connect today with tomorrow’s possibilities, and embrace every moment of life’s pursuits.”
Besides residences and offices, it now also develops retail facilities, logistics facilities, and hotels, with an impressive footprint that extends outside Japan—hub offices in Singapore, Beijing and Hong Kong, as well as projects in the Philippines, Vietnam, Thailand and United Kingdom.
Stellar financial performance
In 2020, Nomura Real Estate was the second largest real estate developer in Japan in terms of condominium unit turnover and the fifth largest in consolidated sales.
As of fiscal year ending March 2021, Nomura Real Estate Group has supplied some 83,000 housing units for its PROUD brand alone, has a net lettable area of 827,000 sqm, and has a total of 152 properties developed for sales. It also manages roughly 1.8 trillion yen worth of assets for more than 200 institutional investors.
Besides having a stable financial base, an extensive track record in real estate development, and a strong customer base, it also gained respect in the industry, high evaluation from its stakeholders, as well as numerous accolades and recognitions from prestigious award giving bodies.
A new era in PH property
This is perhaps the reason why Nomura Real Estate’s arrival in the country and its first project here have gained much attention from Philippine buyers and investors.
More so when it was announced recently that Federal Land and Nomura Real Estate had signed an agreement to develop a P48-billion joint venture company, envisioned to redefine the Philippine property landscape through advanced, world-class township developments. Nomura Real Estate will invest P16 billion, representing about a third of the total capital investment.
The joint venture company, called Federal Land NRE Global, Inc., will no doubt usher in a new era in Philippine real estate development, redefining the landscape with unparalleled excellence by developing a new urban lifestyle, creating value, and ensuring sustainable growth.
“We are thrilled that this partnership has reached this far because within the real estate industry, Federal Land NRE Global will be a game-changer—redefining and raising the bar for the Philippines,” said Federal Land chairman Alfred V. Ty.
“We believe that this partnership will further deepen the relationship of mutual trust that has been fostered through the collaboration in the Sunshine Fort Project, and pursue synergy effects based on the strengths of both parties,” said Daisaku Matsuo, Nomura Real Estate Development president and representative director.
This strategic partnership was likewise lauded by the Philippine Department of Finance, which noted its potential contribution to the overall progress of the Philippine economy.
“This will help bring in more business opportunities to the country, create thousands of quality jobs for our people, promote innovation, and contribute to the collective effort of mitigating the effects of climate change with its commitment to build sustainable communities and smart cities,” said Finance Secretary Carlos G. Dominguez III in a letter addressed to Ty.
“Additionally, this joint venture will offer the Filipino people Japan’s distinctive brand of excellence that will surely redefine the Philippines’ real estate market. I look forward to more innovations in the real estate industry spearheaded by Federal Land NRE Global, Inc. as it partners with the government in building a better, greener, and more vibrant future for the Filipino people,” Dominguez added.
Scheduled to start operations in April, Federal Land NRE Global will incorporate four areas of land development with a total area of about 250 hectares in Metro Manila, Cavite, and Cebu. Plans will include an initial pipeline of residential, office, commercial and industrial facilities.
These plans are expected to generate at least 6,000 new job opportunities within the first five years of operations, helping buoy the Philippine economy as it recovers from this ongoing pandemic.
Indeed, this formidable alliance marks a significant milestone for Federal Land, which is celebrating its 50th year of creating innovative and well-built property developments such as residential homes, commercial and retail spaces, modern office buildings, world-class hotels, and integrated communities.
Federal Land believes that building a core mix of residential and commercial properties can make self-sustaining communities that are dynamic and attractive, and which can provide an unparalleled living experience that will let you enjoy life to the fullest. In recent years, the company launched several landmark projects in partnership with some of the international market’s biggest and most trusted names.
No doubt, this is one trailblazing partnership that will break new grounds and pave the way for a more innovative, progressive urban development in the country.
Federal Land is a wholly-owned subsidiary of GT Capital Holdings, a listed major Philippine conglomerate, whose investment holdings include Metropolitan Bank & Trust Company (Metrobank), Toyota Motor Philippines Corp., Toyota Manila Bay Corp., Toyota Financial Services Philippines Corp., Sumisho Motor Finance Corp., GT Capital Auto and Mobility Holdings, Inc., JBA Philippines, Inc., Premium Warranty Services Philippines, Inc., Philippine AXA Life Insurance Corp., and Metro Pacific Investments Corp.
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