Japan’s NRE says PH to boost overseas profit by 2031
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Japan’s NRE says Philippines to boost overseas profit by 2031

JAPAN’s Nomura Real Estate (NRE) Development Co. Ltd. said it expects the Philippines, a primary investment focus in Southeast Asia after Vietnam, to contribute up to 30% of its total overseas profit by 2031.

“With our current projections and assuming stable market conditions, we estimate that around 2031, the share of profit from FNG would be somewhere between 20-30% of the total profit of our overseas business we make, which is a substantial share,” Atsushi Ogata, executive officer of NRE’s overseas business division, said in an interview in Tokyo last week.

In 2022, NRE and Federal Land, Inc., the property arm of the Ty-led conglomerate GT Capital Holdings, Inc., established Federal Land NRE Global (FNG) to develop real estate in the Philippines permanently.

FNG, which hopes to create 6,000 job opportunities in the Philippines within the first five years of its operations, said it aims to integrate NRE’s innovation, technology, and design with Federal Land’s knowledge of the Philippine market.

Federal Land’s projects include GT Tower International in Makati, Marco Polo Plaza and Marco Polo Residences in Cebu. They also include the Metro Park, a 36-hectare integrated community in the Bay Area, and the Grand Central Park, a 10-hectare township in Bonifacio Global City (BGC), featuring the Grand Hyatt Manila and Grand Hyatt Manila Residences.

Federal Land’s first project with NRE is The Seasons Residences, a four-tower high-end residential development in BGC.

“FNG has four development sites in Metro Manila and Cebu Island, with a total project cost of approximately $5 billion,” said Masato Yamauchi, director and head of NRE’s overseas business division. The FNG project encompasses an initial lineup of residential, office, commercial, and industrial facilities.

The partnership has also brought the first Mitsukoshi, an international department store chain headquartered in Tokyo, to the Philippines.

NRE, currently the largest developer in Japan in terms of condominium unit turnover and the fifth largest in consolidated sales, regards its global business as a significant driver of growth.

The company, with a diverse portfolio including residences, offices, retail spaces, logistics facilities, and hotels,  plans to invest approximately JPY 550 billion in its overseas ventures by March 2031 and aims to generate more than 15% of its total profit from its international operations.

As of last year, NRE had an investment balance of JPY 140 billion in its overseas business — 19% for the Philippines, 5% for China, 10% for the United Kingdom, 1% for the United States, and 50% for Vietnam. This makes the Philippines the second largest recipient of NRE’s investments in Southeast Asia.

NRE is currently expanding its overseas portfolio into additional countries.

In Southeast Asia, Mr. Ogata said that Vietnam’s earlier market entry and larger population “naturally” led to higher investment there.

“We started the Vietnam business many years before the Philippines, so it’s natural to have a larger amount of investment. Also, the population of Vietnam is larger, making it a big market,” he said.

Mr. Ogata also noted the need to recognize the distinct differences between the Philippine and Vietnamese markets when comparing NRE’s ventures in both countries.

“Both are rapidly developing but with unique characteristics. For instance, in Vietnam, we don’t have any capital restrictions, so if we would like, we can invest hundreds of percent into a foreign project,” he said.

NRE’s projects in Vietnam include Zen Plaza, Sun Wah Tower, Phu My Hung Midtown, and Vinhomes Grand Park, all in Ho Chi Minh City, as well as the Ecopark Project in Hanoi.

The Philippines holds significant potential, Mr. Ogata noted. “The Philippine market, with its large population, is strategically important for us.”

The company employs the Japanese principle of “kaizen,” or continuous improvement, to refine its business practices and product offerings.

“Through kaizen, we’ve refined sophisticated methods in Japan that we can apply to the Philippine market,” Mr. Ogata said, highlighting the company’s tailored strategy to meet local needs at every project stage, from planning and design to construction and delivery, aiming to enhance overall value and quality.

Frequently Asked Questions

Find answers to your queries from the categories below.

General Question
Can a foreigner purchase a condominium unit in the Philippines?

Yes, foreigners are allowed to own condominium units in the Philippines, as stated in Section 5 of Republic Act No. 4726, otherwise known as the Condominium Act.

Yes, on the condition that the parent or legal guardian signs the contract on behalf of the minor. Please contact us for more details.

Yes, you can upgrade your purchase. The Developer will first check if the preferred unit is still available. If it is still available, the Buyer will be required to submit a written request. Once the request is approved, a new contract will be drawn up for the upgraded unit.

Yes. The process to downgrade is similar to that of upgrading a unit purchase. However, all expenses incurred by the Developer (commission, incentives, penalties, downgrading fee, etc.) shall be deducted from the Buyer’s original contract price, in favor of the Developer.

What are the available payment terms?

There are several payment terms available – Cash Term, Bank Financing Term, Deferred Cash/Installment Term, and No Down Payment Term. Please contact us for more details as the availability of these payment terms also vary per project.

Yes, you may change or restructure your selected term, but this will also be subject to Management’s approval and we will be charging a minimal processing fee.

Yes, we accept payment in US dollars. The exchange rate shall be based on the date the payment is credited to the Developer’s account.

On or before the due date of the first (1st) monthly amortization, the Buyer is required to submit Postdated Checks for the remaining monthly amortizations (that is, until the end of the payment term).

The developer adheres to provisions as stipulated in Republic Act No. 6552 or the “Realty Installment Buyer Protection Act,” also known as the Maceda Law. This law states that when the Buyer has paid at least two (2) years of installments, the seller/developer shall refund 50% of the total payments made if there is a cancellation on the purchase. For payments less than two years, the provisions as stipulated in the Contract to Sell will prevail.

How much is the reservation fee?

Reservation fees vary per project from Php ____ to Php ______.

Requirements to officially reserve a unit or lot are as follows:

1. Full payment of the Reservation Fee

2. Photocopy of one (1) valid government-issued IDs of Principal Buyer/s and Spouse/s (if applicable). Valid government-issued IDs with photos and signatures:

  • Passport
  • Driver’s License
  • GSIS ID
  • SSS ID
  • Professional Regulatory Commission ID
  • Tax Identification Number ID card
  • Senior Citizen ID
  • Postal ID
  • Photocopy of TIN ID card or BIR validated 1904 form

3. Fully accomplished and signed Reservation Application

4. Fully accomplished Buyer’s Information Sheet. For purchase under a Corporation, the following additional documents are required:

  • Articles of Incorporation and By-Laws (photocopy)
  • Secretary’s Certificate indicating the name of authorized signatory (notarized)
  • BIR-validated 1903 or copy of Certificate of Registration
  • For the authorized signatory to submit items 2 and 3 above

The reservation is valid for thirty (30) calendar days from the settlement of reservation fee. Kindly submit all the required documents to finalize the unit booking.

No, the reservation fee is non-refundable and non-transferrable. As stated in the Reservation Application, the reservation fee will be forfeited in favor of the Developer if no succeeding payments are received.

Will I be allowed to inspect the Unit before the actual turnover?

Yes, the Hand Over Team will coordinate with the Buyer on the schedule of unit inspection.

Yes, the Buyer may assign a representative to accept the unit on his behalf thru a notarized Special Power of Attorney (SPA). The SPA is also required to bring a valid ID plus photocopy.

Yes, you may have your unit leased out.

Monthly Association Dues vary per project, depending on the operating expenses of the building. Association Dues are used to defray the cost of maintaining and operating the building’s common areas and facilities. These costs include administration/management fees, janitorial, security, taxes and licenses, insurances, real estate tax, maintenance of equipment water distribution, garbage collection, maintenance of sewage treatment plant, and other miscellaneous expenses.

The unit turnover will be scheduled when all the following conditions are met:

  • Full payment of the contract price (including penalties and interests, if applicable)
  • Complete submission of all the required sales documents (listed above)
  • Payment of related Advance Registration Charges (ARC).

No, this is not allowed. Buyers are encouraged to either avail of bank financing (with accredited banks) or in-house financing to pay the unit in its entirety.