Federal Land, 2 Japanese firms to develop P20-B project in BGC
Federal Land, Inc. is partnering with two Japanese firms to develop a P20-billion Japanese-inspired residential and retail complex in Bonifacio Global City.
The property arm of GT Capital Holdings, Inc. partnered with Nomura Real Estate Development Co., Ltd and retail service firm Isetan Mitsukoshi Holdings Ltd. for Sunshine Fort, which will feature a four-tower residential condominium, and a shopping mall.
The three firms will jointly finance the project on a 60-40 basis, wherein the 40% will be split between Nomura and Isetan.
“GT Capital leads the way in establishing partnerships to bring Japanese technology and knowhow for the enjoyment and benefit of the Philippine market. Aside from the excitement that the retail mall will bring to many, this partnership will introduce Japanese design in condominium buildings,” Federal Land Chairman Alfred V. Ty said in his speech during the project’s launch in Makati on Monday.
Both Nomura and Isetan noted that their foray into the Philippine market is due to the rapid growth of the country, pointing to the “charm” of the business district in Bonifacio Global City.
Tokyo- based Nomura was founded in 1957 and is part of the Nomura Group of Companies, which includes one of Japan’s largest financial institutions, Nomura Securities. The firm invests in residential development, corporate real estate brokerage and commercial property development, among others, primarily in the Tokyo metropolitan area.
“Nomura Real Estate has the strong will and intention to disseminate the experience and knowledge we have cultivated over the years in Japan, to the Asian regions. We believe or most important mission is to contribute to development of Manila, and we place this Sunshine Fort project as our first step in real estate development in the Philippines,” Nomura Chairman Eiji Kutsukake said in his speech.
On the other hand, Isetan is known for the Mitsukoshi Department stores, which is present in Japan, Europe, and the United States as well as in the Asia-Pacific region, specifically in China, Singapore, Malaysia, Thailand, and Taiwan.
“This project will be our first challenge for the overseas complex development, and we would like to make a contribution to establishing a retail facility that will be long beloved by Filipinos through offering ‘new lifestyle’ with our strategy which has been cultivated by managing a lot of stores in Japan and abroad over the decades,” Isetan President and Chief Executive Officer Toshihiko Sugie said.
The development will stand on Federal Land’s 10-hectare Grand Central Park development in BGC and is expected to be completed by 2025.
The first residential tower will be launched in the first quarter of 2018, with completion slated for 2022. The tower will have a total of 1,294 units — 841 one-bedroom units, 388 two-bedroom units, and 65 three-bedroom units.
However, Mr. Ty said it is still too early to talk about the price point for the residential condominium units.
“We are gauging the market situation. We’re reliant on extra factors that we are putting for this project ahead of market competition and these are features you normally see in Japanese condominium buildings and so all of that will be integrated into the cost,” he said.
For the retail component, the shopping mall will have a total area of 25,000 square meters, and will feature brands from Isetan’s branches in other countries.
“Any product that fits to Filipino culture will be the best. Aside from that, if there is any necessity we will bring in some Japanese products but it will be better if we have retailers currently deployed in Singapore or Malaysia,” Mr. Isetan said.
While the joint venture is still only limited to the Sunshine Fort, Mr. Ty noted that they hope they can expand into other areas as well.
“We want to exert all efforts into making this a success. Of course in the future we hope that business will allow for it to multiply into other areas,” he said.