REAL estate developer Federal Land, Inc., a unit of conglomerate GT Capital Holdings, signed a joint venture agreement with two Japan-based firms on Monday for the construction of a P20-billion mixed-use development project in Taguig City.
The project, the Sunshine Fort, will rise on the 10-hectare Grand Central Park development of Federal Land in Bonifacio Global City, with groundbreaking expected in 2018.
Federal Land, along with Japan’s Nomura Real Estate Development Co., Ltd., and Isetan Mitsukoshi Holdings
Ltd., will construct a total of four towers ranging from 41 to 51 floors that will feature Japanese attributes of functionality, safety, harmony with the environment and simplicity.
Isetan Mitsukoshi will handle the retail development of the project.
“The joint venture companies for now are looking at The Fort as its main flagship. Actually our focus is this Fort Bonifacio project mainly because of the magnitude, so we want to exert all efforts into making this a success,” Federal Land Chairman Alfred Ty told a news conference in Makati City.
“Of course in the future, we hope that business will allow it to multiply into other areas but for now it’s Fort Bonifacio,” he added.
The companies are targeting to finish the first tower by 2022, and the full development by 2025.
“The intention is for the first tower to be ready by 2022. I hope that the retail development will be earlier than this because it sits on a podium so we have the opportunity to open the retail first,” Ty said.
“[Also], we are engaging the market situation. Of course there are a lot of extra factors we are putting in this project ahead of market competition, and these are features you normally see in Japanese buildings, and so all of that will be integrated into the cost and when we announce the launching by first quarter,” he added.
Federal Land will fork out 60 percent of the financing while the remaining 40 percent will be split between the two companies. Funding will be internally generated.
For the residential component, Sunshine Fort will offer a total of 1,294 residential units: 841 will be one-bedroom units, 388 will be two-bedroom units, and 65 will be three-bedroom units.
On the retail segment of the project, Isetan Mitsokushi President and Chief Executive Officer Toshihiko Sugie said the companies aim to bring in Japanese products that will fit in with Filipino culture.
“Products that fit in with Filipino culture and with the Filipino people will be best. Aside from that, if there is a necessity, we would like to bring in some Japanese products,” Sugie said.
The retail component will feature Japanese food, a wide array of japan cosmetics, and japanese-branded “polite service.”
Nomura Real Estate Development is part of the Nomura Group of Companies with a history of more than 90 years in investment banking, while Isetan Mitsukoshi is a holding company in Japan mainly engaged in department stores.