FEDERAL LAND, Inc. may move forward with its construction of a luxury condominium tower located in Taguig in partnership with Japanese firm Orix Risingsun Properties, Inc., after securing approval from the Philippine Competition Commission (PCC).
In a decision penned Oct. 23, the country’s competition watchdog said the joint venture between the wholly owned subsidiary of GT Capital Holdings, Inc. and the Orix Group will not stifle competition in the market.
“(The joint venture) does not result in a substantial lessening of competition in the relevant market, since it does not appear that the transaction would result in foreclosure of the parties’ competitors, and in any case, there appears to be sufficient post-acquisition competitive constraint from other market participants,” the commission said.
Federal Land and Orix have been jointly developing projects since 2007, starting with the P4-billion residential condominium in Makati City called The Grand Midori Makati. The project consisted of two towers each with 500 units on 35 storeys, rising on a 3,900-square meter lot along Legazpi Village, Makati City.
The two companies once again teamed up for the financing of a $300-million mixed-use development in The Fort, Taguig City. The project involved a luxury hotel and prime office and residential complex atop a 1.5-hectare lot, which is now being managed by Grand Hyatt Hotels Worldwide.
Federal Land, alongside GT Capital’s other property firm Pro-Friends, generated combined revenues of P8.9 billion in the January to June period, up 14% from the P7.8 billion reported in the same period last year. This resulted to a net income of P1.5 billion for the period.
Shares in GT Capital lost P26 or 2.20% to close at P1,155 apiece at the Philippine Stock Exchange on Tuesday. – Arra B. Francia
