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FMI ventures into affordable housing

First Myanmar Investment (FMI) will be investing in the affordable housing sector in a bid to offset falling revenue from its construction businesses, FMI chair Serge Pun said during the firm’s 26th annual general meeting, held at the Yangon National Theatre, on July 29.

He said the domestic property sector has no demand as those who have purchasing power have already bought properties, while others are not able to climb up the property ladder yet. Hence, affordabl e housing is an area where FMI is preparing to invest in, the businessman explained.

Although it was estimated that around 400 units will be sold by March 2018 for the Galaxy Towers as part of the Star City project, only 100 units were sold, he admitted. After completion, Star City will have a total of 10,000 units.

“It is easy to talk about establishing affordable housing but it is hard to figure out in implementation. However, we will try to do so. Currently, we are drafting the plan and we can reveal the details after three months,” he said.

The company recently rebranded its real estate businesses, including Pun Hlaing Estate, StarCity, Yoma Central and The Peninsula Residences Yangon, under a new division called Yoma Land.

U Tun Tun, executive director of FMI told The Myanmar Times, that it is too early to provide a timeline but details will be disclosed in three months’ time.

Cyrus Pun, managing director of Yoma Land, told the media in June that their growth plan involved expanding into the mass market segment, which also includes developing low-cost housing projects. By doing so, the company will also gain access to a much larger proportion of the Myanmar population.

Yoma Land’s push into the mass market is backed by its connection to Yoma Bank and other private banks in the country. Yoma Bank is controlled by FMI, which is the sister company of Yoma Strategic. This will enable Yoma Land to work closely with the banks in bringing a larger pool of financing options to potential home buyers, helping them to better afford new homes.

Source: Myanmar Times

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