Yoma Central, previously known as the Landmark, is set to kickstart its $718-million real estate project in Yangon. In another realty related development, the ministry of construction is planning to finish 8,000 low-cost apartments in Yangon.
Yoma Central’s $718m project
Yoma Central, the $718-million real estate development led by Singapore listed Yoma Strategic Holdings and YSX listed First Myanmar Investment Co Ltd, held its ground-breaking ceremony last week (February 16) following its approval from the government last month.
Formerly known as the Landmark Development, the project is located on a 10-acre site downtown Yangon at the compound of the former headquarters of the Burma Railway Company. The project comprises a mixed-use development and a hotel.
“Yoma Central will help shape the face of new international Yangon and that is ready and open for business,” said Serge Pun, executive chairman of Yoma Strategic and FMI. “Yangon Central will no doubt play a pivotal role in the city transformation into an international city” he said, during the ground breaking ceremony.
The project marks the largest foreign direct investment approved in the real estate sector in Myanmar.
Undertaken by Meeyahta Development Ltd, the project will feature a tower of luxury residences, two office towers, a tower of hotel and serviced residences approved for an investment of $574 million. Yoma Strategic will hold a 48 per cent stake while Mitsubishi companies will have 30 per cent and FMI will own 12 per cent. Meanwhile, IFC and Asian Development Bank will have 5 per cent each.
The Peninsula Yangon Ltd will transform the colonial heritage building into a world class hotel by using about $144 million. Hong Kong and Shanghai Hotels takes a 70 percent stake and Yoma Strategic and FMI will hold 24 percent and 6 percent respectively in the project.
Ministry of Construction plans low-cost public housing
The Yangon Region government plans to finish the construction of 8,000 apartments in two years by 2017-18 financial year, the new government’s attempt for the public to own a house at a low cost.
Under the plan, the government is planning to complete 180,000 apartments by 2021 which will cost slightly over K10 million per apartment.
“In order to complete the project in time, Shwe Taung have come out with about 70% of project cost by internal funds and relevant bank loans,” said a spokesperson from Shwe Taung Group, one of the contractors, during an interaction with DEALSTREETASIA.
Other contractors involved in the project include A1 Construction, Naung Tone Construction, Win & Win, Original Group, according to industry sources.