Atsushi Ogata first came to Manila in 2013. As a broker then for Nomura Real Estate (NRE), one of the top real estate companies in Japan, he was tasked to sell office buildings in Tokyo to a prominent local businessman, who turned out to be the late Dr. George SK Ty, founder of GT Capital Holdings and the Metrobank Group.
That started the relationship between NRE and the Metrobank Group’s own real estate company, Federal Land Inc. (FLI), which is chaired by George Ty’s son Alfred Ty. Eventually, the two giants in real estate came together for an ambitious new project in Bonifacio Global City (BGC).
Nomura Real Estate Development Co. Ltd.’s Masato Yamauchi (head of overseas business) and Atsushi Ogata (executive officer)
“(Alfred Ty) took me around to see their major projects and also the potential site in BGC (Bonifacio Global City),” Ogata says. “He asked me to bring major Japanese department store as a tenant for the shopping center. I was just a broker at the time. So I met with Mitsukoshi, and asked them, ‘Why don’t you come to Manila?’”
Of course, everyone knows the story by now. FLI partnered with NRE and Isetan Mitsukoshi Ltd to develop The Seasons Residences, a mixed-use development that includes four residential towers and the first and, so far, only Mitsukoshi shopping mall in the Philippines. The joint venture, which commenced in 2017, is 60 percent owned by FLI, while the remaining 40 percent is divided between NRE and Isetan Mitsukoshi Ltd.
The Seasons Residences in BGC is anchored by the first Mitsukoshi mall in the Philippines
The partnership worked so well—takeup for The Seasons Residences has been brisk and the project just launched its fourth and final tower called Fuyu, or Winter, last year—that FLI and NRE decided to formalize a more long-term partnership in the form of a new joint venture company. Launched in 2022, Federal Land NRE Global (FNG), is envisioned to be a “sustainable enterprise focused on long-term real estate development in the Philippines.” The company currently has four development sites with a total land area of 250 hectares in Metro Manila, Cavite, and Cebu with a combined project cost of $5 billion.
“We strongly believe that the real estate business is inherently local,” Masako Yamauchi, NRE’s head of overseas business, told a group of Filipino journalists during a visit to the NRE headquarters in Shinjuku, Tokyo, Japan. “Therefore, it’s crucial to adapt flexibly to meet the specific needs and practices of local customers, rather than merely applying Japanese know-how and experience. At FNG, we have a dedicated team of 13 Japanese employees. With their profound understanding of the Philippines, they actively participate in business promotion from the early stages, such as product planning and design. They are committed to applying Nomura Real Estate’s expertise to local manufacturing processes here in the Philippines.”
Scale model of the ambitious Shibaura Project in Tokyo, the highlight of which is the twin towers that will have sweeping views of Tokyo Bay
Nomura Real Estate Group’s story
Founded in 1957, during the reconstruction period immediately following World War 2, NRE’s roots lie in developing large-scale housing for Japanese citizens. It has since expanded to include five business segments: Housing, which encompasses condominiums, detached houses, and residential properties; Buildings for office buildings and commercial properties, Assets Management and Development for the development and sale of real estate properties, as well as funds and equity investments, and asset management; the Brokerage and Entrusted Sales segment; and Others, which handles the design and supervision of construction works, among others.
A model unit of a typical NRE condominium project in Tokyo
“In response to evolving social needs, Nomura expanded its business to include condominiums, office buildings, retail properties, and more,” Yamauchi said. “Today, our condominium brand PROUD ranks number one in Japan, and we are recognized as one of the country’s top 5 real estate companies. However, our dedication to fulfilling our social mission and addressing market needs remains as strong as ever.”
NRE, which is part of the Nomura global financial services group, has a current market cap of about JPY734.76 billion (about P274 billion). It posted total revenues of JPY487.22 billion (about P181.3 billion) as of the end of the first quarter of 2023. While the company currently has several projects across Japan, one of the biggest and most high-profile is the redevelopment of the Shibaura area of Tokyo. In addition to residential, commercial and office spaces, the Shibaura project’s centerpiece project is the twin towers measuring 230 meters tall and with fantastic views of Tokyo Bay. Expected to be two of the tallest buildings in the Japanese capital, construction of Building S (or South Tower) is ongoing and is expected to be completed by February 2025, while construction on Building N (or North Tower) will commence in 2027 and expected to be completed by 2031.
NRE’s PROUD City Minamiyama horizontal development in Inagi, Tokyo
In addition to office spaces and commercial areas, the towers in NRE’s Shibaura project will also house Japan’s first-ever Fairmont hotel property.
Through its overseas business, NRE also has a presence and ongoing projects in Hanoi and Ho Chi Minh City in Vietnam; Singapore; Hong Kong; Bangkok, Thailand; Beijing, China; the U.S.A.; the United Kingdom; and, of course, the Philippines.
Interior of a four-bedroom house in PROUD City’s Minamiyama project
Nomura’s partnership with FLI
According to Nomura, in addition to its existing business relationship with FLI, several other factors came into play in relation to its joint venture deal to invest in the Philippines. These include steady population growth, with an average age of 24 years and a long-term demographic dividend expected until around 2050; strong economic growth driven by domestic demand, with a GDP growth rate of 5.6% in 2023 and projected growth of six to seven percent this year; and stable political policies, including active encouragement of foreign investment and infrastructure development.
Artist’s perspective of The Observatory project in Mandaluyong City
The previous project both groups worked on—The Seasons Residences in BGC—also proved to NRE how there was a strong demand for its product and offerings in the Philippines.
Ogata says NRE was able to contribute and enhance FLI’s profile through its experience in large-scale and high-rise condominium towers. It also added anti-earthquake dampers into the building, making it one of the first in the country to have that technology.
“Also in terms of design, we try our best to include the Japanese design into the shopping center,” Ogata said. “And it’s not just the shopping center, but in the common areas of the building as well, including the entrance area of the residential tower, as well as the actual interior design of each condominium (unit). So the project is very different from ordinary style of condos.”
Artist’s perspective of FNG’s Yume at Riverpark project in Gen. Trias, Cavite
“This endeavor not only showcased the Philippines’ economic vitality but also validated our product’s appeal and garnered positive customer feedback, marking a significant milestone,” Yamauchi said. “Most importantly, it deepened our partnership with Federal Land, our collaborator. This joint venture was established with the mutual goal of leveraging our respective strengths to deliver new value to the Filipino market.”
Today in the Philippines, FNG’s pipeline involves four projects: a 250-hectare township project in Cavite; mixed-use condominium, retail, and office project in Mandaluyong City; the Met Live 3 project with both office and retail spaces in Pasay City; and a condominium and retail project in Cebu City.
Two of the most anticipated projects are The Observatory, the high-rise condominium project located along Pioneer Street in Mandaluyong City; and Yume at Riverpark, the horizontal development located at Riverpark North in General Trias, Cavite.
Kameido Clock is a new shopping mall developed by NRE that is attached to one of its condominium developments in Koto City, Tokyo
“Nomura is most committed to the Philippine market among its international ventures,” Yamauchi said. “This commitment is evidenced by the establishment of a joint venture in the Philippines, aimed at contributing to the country over the medium to long term. This represents a deeper level of involvement compared to our operations in other countries.”