Japanese department store operator Isetan Mitsukoshi Holdings will work with compatriot Nomura Real Estate Holdings to develop commercial-residential facilities in the Philippines.
The property will be built in a suburb of the capital, Manila, and is slated for partial opening as early as 2022. Project costs are seen totaling around 50 billion yen ($497 million).
The plan is to erect four 40-story condo buildings totaling over 1,500 residential units on a 15,000 sq.-meter lot. Isetan Mitsukoshi will operate commerical facilities on the lower levels of the buildings, including a department store. In addition to items popular among local consumers, the retail giant plans to offer products developed in-house to pique their shopping appetite.
Though many big Japanese retailers and real estate giants are building operations in Asia, a project combining residential and commercial features is rare. The pair plans to map out details by spring 2017 and will partner with a local developer to advance the project.
The Philippines’ gross domestic product grew 7% on the year in real terms in the April-June period, the government said Thursday. The sharp growth driven by services and consumer spending stands out in Asia.
The project is Isetan Mitsukoshi’s latest effort to expand elsewhere into Asia amid a shrinking domestic market. No other Japanese department store operate in the Philippines.
Among Japanese retailers, convenience store operators Ministop and Lawson already operate in the Philippines, as does Fast Retailing’s Uniqlo clothing chain.
In broader Asian expansion, Isetan Mitsukoshi rival Takashimaya is ahead of the game. The group tapped its experience running a Singaporean commercial facility and opened a similar site in Vietnam’s Ho Chi Minh City at the end of July. Takashimaya plans a site in Bangkok next year.
Source and image: Nikkei