Japanese real estate developer starts joint venture business in PH
It is the most opportune time to invest in the Philippines. This is according to Hideki Tanifuji, founder and CEO of Asian Mergers and Acquisition Links (AMAL) as he pointed out the country’s rise as a highly favored investment destination.
This has encouraged a lot of companies from all over the world to invest in the Philippines. One of those is a Japanese company based in Fukuoka, Japan. The company called Kyushu Yaesu Co., Ltd. is one of the leading real estate developers in Fukuoka City and has built more than 2,000 homes. Established in 1977, the company is instrumental in transforming major parts of Fukuoka into thriving residential communities that have benefited generations of families.
Before Kyushu Yaesu Co., Ltd. can enter the Philippine real estate scene, it has to have a local partner.
“Because we are a foreign company, we cannot fully own land or property. Thus, we searched for a local partner who supports our company’s mission and vision,” said Hisao Nakashima, Executive Vice President of Kyushu Yaesu.
This is where AMAL entered the picture. Established in 2015 by Tanifuji, AMAL is a boutique investment firm that guides businesses and corporations in merging and acquiring companies for business expansion and new industry opportunities. With over 10 years of reputable corporate experience in the field of mergers and acquisitions (M&A) and thorough understanding of the global market, Tanifuji brings his industry expertise to the country via his growing team of young Filipino professionals. This includes finding an appropriate local partner for Kyushu Yaesu Co., Ltd.
“We are connecting two companies from different countries. We provided advisory services and assistance throughout the entire rigorous process. After assessment and evaluation of Kyushu Yaesu’s needs, we matched them with a company that has similar corporate goals and objectives,” said Tanifuji.
When Kyushu Yaesu Co., Ltd. approached AMAL, Tanifuji’s team listed down clients, introduced them to M&A, did negotiations and evaluations down to assisting the company in coming up with the necessary contracts, papers and permits.
Not long after, AMAL successfully found a joint-venture partner for Kyushu Yaesu Co., Ltd. – Filipino company NedSteel Construction and Development Corp. The new company formed in this joint venture is named Hinata Housing Corporation which will develop well designed low-cost housing starting in Nueva Ecija.
Prior to establishing a business in the Philippines, both Nakashima and Akira Shiraishi (President of Ambitious Urban Development Philippines, also a subsidiary of Kyushu Yaesu which started its foray in the Philippine real estate market by leasing out 30 condominium units) resided for almost a year in the country to discover its business potentials.
Since Kyushu Yaesu is already known in Japan as a credible housing developer, they decided not to veer away from its mission and go into the competitive Philippine real estate industry. They saw not only the potential of real estate in the urban areas but also discovered the tremendous prospects of the real estate development in the countryside.
“We don’t want to build homes for the Japanese or foreigners here in the Philippines. We want to build homes for Filipinos – affordable yet quality homes which our company is known for back in Fukuoka,” said Nakashima.
Currently ongoing development is the first of two phases of Peñaranda community called Generous Village and Phase 1 of a community in Tabon. Nakashima estimates that the first phase of Peñaranda will be finished in three years and will mainly benefit workers of the municipality. The prices of the homes range from 1800,000 to 11.5 million for Peñaranda and 11.5 million to 12 million for Tabon making it affordable to most Filipino families.