Sojitz Corporation has partnered with the Science Park of the Philippines, Inc., a major developer and operator of industrial parks, to conclude a sales agent agreement for the sale of two industrial parks developed and currently being sold by SPPI.
As a developer, SPPI has constructed six industrial parks across the Philippines, which include Light Industry Science Park (“LISP”) I-IV and Hermosa Ecozone Industrial Park (“HEIP”). Sojitz is selling two industrial parks, LISP IV and HEIP. LISP IV is located within one hour’s drive south of Manila and conveniently built near an expressway. The area is popular with Japanese companies taking their operations abroad. HEIP’s location is advantageous from a logistics perspective as the industrial park is proximal to Subic International Port and Clark International Airport in the northern part of Luzon Island.
Due to population growth and increased consumer spending over the mid-to long-term, the Philippines maintains a relatively high economic growth rate among its fellow ASEAN countries, and is expected to continue to demonstrate growth. The country’s abundant labor force and English-speaking populace is attractive to those considering entrance into the Philippines, which continues to steadily develop as a center for exports. At the same time, the population has already exceeded 100 million people and there is a relatively large consumer market in the country. We expect there will be Japanese companies aiming to capture this rising demand in the domestic market.
Sojitz will bring its business expertise on industrial parks from its past experiences in Vietnam, Indonesia, and India, to primarily support Japanese companies who are looking to enter business in the Philippines. The Sojitz Group will support companies seeking to expand into LISP IV and HEIP, which were developed by SPPI.
Date: Nov 10, 2017