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Manila, Philippines — ArthaLand Corporation (ALCO) has recently signed a contract with Mitsubishi Estate Company, Ltd. (MEC), considered as one of the largest Japan-based real estate developers, as reported by Inquirer. The said contract is the first venture of Mitsubishi Estate in the country.
Mitsubishi Estate’s contract indicates that it would acquire a 40% stake in ArthaLand Corporation’s ownership of Savya Land Development Corporation which is responsible for developing the Savya Financial Center located in ARCA South, Taguig City.
ArthaLand Corporation and Mitsubishi Estate partnership
Under the terms of ArthaLand Corporation and Mitsubishi Estate’s partnership, the former takes the lead in managing the project operations while the latter will offer its expertise in terms of property development to enhance and improve the project’s value, says Philstar.
“We are pleased to join the promising Philippine market and collaborating with a good partner, ALCO. ArthaLand has great experience in providing valuable and sustainable developments to (the) Philippine society. It was one of the important elements for us in deciding who we would be working with,” according to Yutaro Yotsuzuka the managing director of Mitsubishi Estate Asia.
“We are honored to be chosen as the partner by Mitsubishi Estate in their first venture in the country and we stand to gain from their over 100-year experience in property development, architecture research, and design,” said the Vice Chairman and President & CEO of ArthaLand Corporation, Jaime C. González.
What made the Philippines an attractive choice for Mitsubishi Estate?
The country’s continuous and vibrant economic growth compared to other ASEAN countries made Mitsubishi Estate decide to expand its business in the Philippines. According to Yotsuzuka, they believe that the country is expected to see a continuous economic growth due to the government’s “Build, Build, Build” project, in addition to its strong economic fundamentals.
“We thought there will be a lot of business opportunities in this country and we also thought there will be a lot of possibility for Mitsubishi Estate Group in which it can bring its expertise,” he added.
Partnership to last a long period of time
ArthaLand Corporation’s partnership with Mitsubishi Estate is considered highly strategic as it stands to gain from MEC’s experience in global development and perspective — allowing the company to improve its quality, system, and to learn the latest techniques and trends in architectural design, engineering, and sustainability.
“We are aligned with Mitsubishi Estate’s values in building legacy projects. It validates our position in the industry as a leader in timeless design, high quality, and sustainable developments,” said Leonardo Arthur T. Po the executive vice president and treasurer of ArthaLand Corporation. He also added that they are looking forward to building more commercial office projects with MEC.
According to Yotsuzuka, it is essential for them to have the corporate vision and philosophy with their joint venture partners whenever they do business. “Going through the discussion with ArthaLand, we found common interests and values,” he said.
Mitsubishi Estate: An Insight
Mitsubishi Estate is known for its leading position in the Japanese market —developing commercial, residential, and retail properties. The company’s strength lies in its comprehensive business structure which covers businesses ranging from development, leasing properties, and property management.
It has a capitalization of around $24 billion and as of the previous year, it has the most valuable portfolio in the Japanese real estate industry. Most of its projects are located in the Marunouchi district of Tokyo that has now grown into the country’s top business district.
Around 40% of Mitsubishi Estate’s total revenue comes from its office buildings. On the other hand, its residential business generates around 35% and 10% on its international business. The company also owns Japan’s second tallest skyscraper, the Yokohama Landmark Tower, in addition to the Marunouchi Building and Sanno Park Tower in Tokyo.
Savya Financial Center is intended to be the new capital address for business and commerce in ARCA South. The project was launched early this year and its construction is already underway. Both the North and South towers of the said building are built and designed with modern, smart, and sustainable features. It is pre-certified Gold with the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) and registered with the Philippine Green Building Council’s (PHILGBC) BERDE – a tool to assess, certify, measure, and monitor the performance of green building projects.
The Savya project seeks to provide a working environment that increases energy and resource efficiency and at the same time, reducing operating costs and promotes and productive and healthier office space for business across the metro.