In a statement released over the weekend, the Lopez-led property developer said it signed a joint venture agreement with Mitsui Fudosan for residential portion of The Arton by Rockwell.
The deal would give the Japanese company a 20% equity stake in the three-tower high-end residential development that will rise along Katipunan Avenue in Quezon City.
“We are honored that Mitsui Fudosan chose to partner with us in their first foray in the Philippines and we hope that this will be the beginning of a long and fruitful partnership with them,” Rockwell Land President Nestor J. Padilla was quoted as saying in a statement.
Mitsui Fudosan is engaged in developing, leasing, selling, and managing a portfolio that spans retail, office, residence, hotel, and logistics. The Tokyo-based firm is currently expanding overseas with residential projects present in the United States, the United Kingdom, Taiwan, China, Malaysia, Singapore, Thailand, and Indonesia, with expansion still eyed across Asia.
With the partnership, Rockwell Land joins the roster of firms that have tapped Japanese real estate developers for their projects.
Last week, GT Capital Holdings, Inc.’s property arm Federal Land, Inc. signed a P20-billion agreement with Nomura Real Estate Development Co., Ltd and retail service firm Isetan Mitsukoshi Holdings Ltd. to develop the Sunshine Fort in Taguig City.
Meanwhile, P.A. Alvarez Properties and Development Corp. also signed an agreement with Hankyu Hanshin Holdings, Inc. for a P656-million affordable housing project in Dasmariñas, Cavite in June of this year.
The first tower of The Arton, called Arton West, will officially be launched on July 29. The entire project will stand on a 1.9-hectare property with the three towers set to have 24, 28, and 34 towers, respectively.
The Arton will feature 1,700 units ranging from 27 square meters (sq.m.) for studio units up to 103 sq.m. for three-bedroom units. The listed property firm earlier noted the absence of a high-end development in the Katipunan area, with the construction of The Arton intended to fill that gap.
The transaction will still be subjected to regulatory approval, particularly from the Philippine Competition Commission for acquisitions valued at more than a billion pesos.
Rockwell Land is rolling out P14 billion in capital expenditures for new project launches this year, which includes its first venture into resort developments in Mactan, Cebu.
Earnings of Rockwell Land surged by 51% in the first quarter of 2017 to P516 million, following a 52% rise in revenues to P3.07 billion. The company is targeting a double-digit growth for the full-year 2017.
Shares in Rockwell Land were down by a centavo or 0.56% to close at P1.78 each at the stock exchange on Friday.