Pun-Backed Project At Yangon’s Colonial Railway Building Wins ‘Milestone’ Government Approval

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The Myanmar In­vestment Com­mission (MIC) has given approval to a mixed-use mega project at the heritage listed My­anmar Railway Company building in downtown Yangon.

The Landmark Devel­opment, as it’s known, is divided into two parts. The redevelopment of the colonial era Myan­mar Railway Company building into the five star Peninsula Hotel Yangon and a mix-used develop­ment which is to include a business hotel, serviced apartments, high-end retail and office space on the surrounding land owned by the Ministry of Transport and Communi­cations.

Local business tycoon Serge Pun’s First Myan­mar Investment Group (FMI) and Singapore list­ed sister company Yoma Strategic Holdings will own 12 percent and 48 percent of the mixed-use project, with Yoma ex­pecting to spend between 92 million and $117 mil­lion on the project.

FMI told Myanmar Business Today more de­tails on the next phase of the project would be re­vealed in mid-February.

The MIC approval re­moves the last hurdle for the project, which has been held back for years while local firm Yoma Strategic Holdings sought two 50 year lease extensions for the land owned by the then Ministry of Railways.

“This is a major mile­stone towards satisfac­tion of conditions in the Company’s sharehold­ers agreements with its respective joint venture partners,” Tun Tun, FMI’s executive director, said in a note to investors published on the Yangon Stock Exchange website.

The project, a collabora­tion between several firms from across Asia, will cost over $660 million and is slated for completion in 2020.

Japan’s Mitsubishi Cor­poration and Mitsubishi Estate will own 30 percent of the mixed-use develop­ment, while the Interna­tional Finance Corporation (IFC) and Asia Develop­ment Bank (ADB) will own 5 percent each.

Hong Kong and Shang­hai Hotels will own 80 percent of The Peninsula Hotel development while Serge Pun’s Yoma Strate­gic and FMI will own 24 percent and 6 percent re­spectively.

 

Source: Myanmar Business Today
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