Yoma Strategic Holdings Ltd., have signed a framework agreement with the Ministry of Rail (MR) Myamnar, covering two sites in Yangon. As we detail below, approval for site 2 is awaited from the Myanmar Investment Commission. The project, known as The Landmark Project, has a budget in excess of US$400m. Local reports confirm that based on size of the project, 240,000m2, the Landmark Yangon will be the biggest development in downtown Yangon and one of the largest in the country.
We in FocusCore strive to keep our clients informed on the rapidly growing economy in Myanmar and part of the broader service is also via these blogs. This project is very significant, with plans for 10 acres of prime development in Yangon.
The colonial style Burma Railways head office buildings are heritage listed and located on site 1. These will be transformed into a five-star luxury hotel to be called The Peninsula Hotel, Yangon. This is in line with the Government’s demand for more luxury accommodation in the city. This development will be at 372 Bogyoke Aung San Road, Pabedan Township, over an area of 9.5 acres. Site 2 is located at 380 Bogyoke Aung San Road, Pabedan Township. The site is the location for First Myanmar Investment (FMI) offices and the Grand Meeyahta Residences, which closed in October 2013.
The framework agreement authorises a contract for site 1 with a lease of 50 years dated from 1 January 1998, with an extension of up 10 years. As soon as authorisation from the Myanmar Investment Commission is obtained, further contracts will be signed to cover site 2. This is scheduled to be no later than March 31, 2016 and will also provide an option to extend the lease for up 10 years. This is the maximum period authorised under the Foreign Investment Law (2012).
The Executive Chairman of Yoma Strategic and Chairman of FMI and Serge Pun Associates is Mr Serge Pun. Yoma Strategic Holdings Ltd is listed on the Singapore Stock Exchange. Investors reacted favourably to the announcement, boosting the share price. In the Annual Report for Yoma published last year, Mr Pun refers to Myanmar saying “the domestic market opens up and opportunities abound”.
The framework agreement names Meeyahta International Hotel Limited (“MIHL”), a subsidiary of Yoma. They are operating in partnership with Hong Kong-based HK & Shanghai Hotels (HSH Group). There is also the mixed-use development and further investors include the Asian Development Bank and the International Finance Corporation. Reports indicate that they have each agreed to invest US$70 million in a separate portion of the project, comprising $50 million in debt and $20 million in equity.
Work on site is expected to start this year, once further authorisations are obtained. The development will make a dramatic impact on the Cityscape of Yangon. Having seen an artist’s impression of the development, it seems safe to say that it will live up to the project name – The Landmark Project.
This is likely to be a focal point in Yangon’s downtown business district once all relevant authority approvals are finalised.
The pace of change is itself also developing and growing faster in Myanmar every year. We can guide you on the many elements that can accelerate the operational readiness of your company. We provide guidance on strategic direction and also provide ongoing operational corporate support. We focus on your needs so you can focus on your business. That is our call to action and we look forward to receiving your calls and enquiries in 2016 as “opportunities abound”.