PCC clears Federal Land JV deal

MANILA, Philippines -  The Philippine Competition Commission (PCC) has given its go-signal to the joint venture of Federal Land Inc. and Japanese giants Isetan Mitsukoshi Holdings Ltd. and Nomura Real Estate Development Co. Ltd.

In a July 13 decision, the PCC said the joint venture is not likely to lead to anti-competitive behavior because the parties operate in different markets.

“In view of the recommendation from the Mergers & Acquisitions Office that, on the basis of information obtained from the parties and other sources to date, the joint venture by Federal Land and the joint venture of Isetan and Nomura is not likely to result in a substantial lessening of competition in the relevant market, considering that the parties are not operating in the same relevant market,” the PCC said.

The joint venture involves the development of the P20 billion Sunshine Fort project which will comprise four high-rise residential towers atop a commercial complex in Bonifacio Global City, Taguig.

“The commercial complex is intended to be a common podium for all four towers and will house a department store to be led by Isetan Mitsukoshi while Nomura shall design the four residential towers,” the parties said in their submission to the PCC.

Federal Land chairman Alfred Ty said the project is the first in the Philippines to realize a “Japan concept“ which at the same time would be affordable and fit the taste of Filipino consumers.

The project brings Nomura and Isetan to the Philippines for the first time.

Nomura is a leading residential company established in 1957 while Isetan Mitsukoshi is a top retail service group in Japan.

The project, targeted for completion in 2025, is expected to bring Japanese tradition of excellence, innovation and artistry in the Philippines.

The partnership is a 60-40 joint venture project in favor of Federal Land.

GT Capital has businesses in banking, property development, infrastructure and utilities, automotive assembly and importation, among others.