Eight foreign companies from five countries are bidding to develop a 2-acre plot of land in Yangon owned by the Myanmar Construction Entrepreneurs Association, according to chair U Tha Htay.
Prospective investors have made a number of proposals for the site at the corner of Waizayanda and Thanthumar Roads in Yangon’s Thingangyun township, including for mixed-use complexes, tower blocks and shopping centres, he said.
One company from Japan has proposed a US$200 million project, he said during an MCEA meeting on November 28. “In return, they have offered to give us $30 million in cash and 30 percent of all the rooms they build. The development would cover around 1.5 acres of the 2-acre space.”
Since the land is owned by the 3000-member association, any project must first be approved by all the members, he said. Subject to approval, the land would be leased to a developer for 50 years initially, with two 10-year extensions.
The project would be a joint venture under build, operate, transfer terms, U Kyaw Kyaw Soe, joint general secretary of the MCEA, told The Myanmar Times.
“It could start in December 2016, following a decision at a special meeting next May or June,” he said. “We will review all the proposals before deciding which team from which country will be selected.”
The land was granted to MCEA by the former government in 1996 as payment for construction projects. However, until recently the association had not been able to secure land documents, said U Tha Htay.
The 3000-member association is considering opening offices throughout the country.
In Nay Pyi Taw, it has received a number of proposals from domestic and foreign companies for a 5-acre plot near to the city’s hotel zone, but instead wants to use the land for a construction training school.
Source: Myanmar Times