The York Center office building on Yangon’s Yaw Min Gyi Street aims to open its door this month, offering minimum six-month leases to firms looking for office space.
Scipio Services has agreed to a management services agreement with the property owner, rather than developing the project through a long-term lease on Build-Operate-Transfer terms often employed by large foreign firms, according to Scipio managing director Brett David Miller.
Long-term leases are suitable for firms with longer horizons, such as hotels, but often have high capital requirements and a permitting process that can be discouraging to smaller foreign investors with shorter investment horizons, he said in a press release.
The firm provided capital for renovation, aiming for increased returns over the managing period, while the landowner stands to benefit from equity appreciation, the release said.
“Our clients looking for commercial space in Yangon told us they wanted optimal office sizes, flexible and affordable lease terms and to be in a professional-looking building in a great location,” said Mr Miller.
Initially built as a residence for the Pyi Thu Sanda Medicine family in 1972, it was built by the same engineer behind Karaweik Hall on Kandawgyi Lake. Purchased by a new owner in 1981, it was a residence until 1990 when Korean firm Daewoo used it as a residence. In 2012, Daewoo vacated the premises, with Scipio renovating the property in 2014.
The three-story building is 18,000 square feet, with up to nine separate offices, and is located on the former York Street – now Yaw Min Gyi Street – near the Park Royal Hotel in Dagon township.
Source: Myanmar Times