Keppel Land in JV for Yangon office tower

Residential property by Keppel Land

Keppel Land Limited (Keppel Land) has entered into a joint venture agreement with the Shwe Taung Group (STG) to develop a 23-storied office tower in Myanmar’s Yangon’s central business district (CBD), the company said.

Singapore-listed Keppel Land will invest about $47.4 million (approximately S$61.6 million) in the venture.

The Singapore company will hold a minority 40 per cent stake in the office tower that is part of Junction City, a mixed-use development, which will also comprise of a five-star Pan Pacific Hotel, a shopping centre and a residential towers. It will also house Yangon’s largest car parking facility offering more than 1,400 car park lots.

When completed, the office tower will offer a net leasable area of about 33,400 square meters of premium space, meeting demand for high quality office space in Yangon, which presently, has limited supply of the same. Construction for the office tower has commenced and is expected to be completed in 2017, the company added.

The Singapore firm has been active in Myanmar of late. Its other projects in that country include, Sedona Hotel Mandalay and Sedona Hotel Yangon, which is adding a new tower block to its existing wing. When completed in 2016, it will bring Sedona’s total inventory of rooms in Myanmar to 1,037.

Keppel Land is also looking to expand its portfolio in other capital cities around the region. This is mainly due to rising costs in its home market. It had recently made a slew of announcements about the redevelopment of International Financial Centre Jakarta Tower 1 in Indonesia, as well as the expansion of its mixed-use developments in Vietnam and the Philippines, namely the 37-storey office tower in Saigon Centre Phase Two in Ho Chi Minh City and the 42-storey office building and retail mall extension of the SM-KL project phase two in Manila.

Funding expansion: REIT Listing 

These developments also come at a time when another Keppel unit – Keppel T&T – is readying its initial public offering (IPO) for its data centres, and plans to raise about S$540 million ($432 million).

DEALSTREETASIA has learnt that Keppel DC REIT (real estate investment trust), which plans to offer seven per cent yield, has attracted about 10 cornerstone investors, who have agreed to buy more than 50 per cent of the units on offer.

Keppel DC REIT will sell about 70 per cent of its enlarged share capital with parent firm, and plans to use about half the proceeds to subscribe to units of this real estate investment trust (REIT). Keppel T&T will own the remaining 30 per cent.

Keppel T&T is a unit of Singapore conglomerate Keppel Corp and the REIT will allow the company to finance its own expansion plans without having to depend on its parent company. This will be the second REIT, to be listed by Keppel Corporation. About a decade ago, it had floated Keppel REIT on the Singapore exchange.

This also marks the first IPO of a data center trust in Asia. The REIT will launch with eight properties in Asia-Pacific and Europe: Keppel Digihub and Keppel Datahub 1 in Singapore; Gore Hill Data Centre in Sydney and iseek Data Centre in Brisbane; Basis Bay Data Centre in Selangor; GV7 Data Centre in London; Almere Data Centre in Amsterdam and Citadel 100 Data Centre in Dublin.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.