Yoma Strategic Holdings Agrees to Purchase 80 Percent Stake in Two Million-Square-Foot Mixed-Use Development in Yangon
- Nov 26, 2012
Yangon, Myanmar—Yoma Strategic Holdings Ltd. announced that it has entered into a sale and purchase agreement with Serge Pun & Associates Limited to acquire rights to participate in the development of around 10 acres of land in downtown Yangon, Myanmar. The group has agreed to purchase 80 percent of the issued and paid up share capital of Meeyahta International Hotel Limited for a consideration of $81.28 million. Following two independent valuation studies carried out by Jones Lang LaSalle, appointed by Yoma Strategic Holdings Ltd., and Robert Khan & Co. appointed by the seller, the price was set at a 3 percent discount to the mid-point of the two valuations.
Located at 372 to 380 Bogyoke Aung San Road, in the center of the downtown Yangon business district, the site is situated between Trader’s Hotel, the Sakura Tower and the Bogyoke Aung San Market. The site is currently home to the FMI Centre Tower, the Grand Mee Ya Hta Hotel and one of the most famous heritage buildings in Yangon, the former Railway Headquarters. The proposed development will feature 2 million square feet of gross floor area and will include residential, retail, hospitality and office space.
According to the master plan, the Railway Headquarters, built in 1877, will be restored and converted into a five-star hotel, which will be adjoined to a newly built five-star luxury condominium building. The plan also calls for a four-star hotel, a four-star serviced apartment complex and two Grade-A office towers totaling over 700,000 square feet of gross floor area. A five-story retail podium will also be constructed and will feature more than 400,000 square feet of gross floor area. The proposed development is estimated to cost between $330 million and $350 million.
Chief Executive Officer of Yoma Strategic Holdings Ltd., Andrew Rickards, said: “This landmark development will be an iconic destination which will lead the way in Myanmar. We believe the converted Railway Headquarters will become a unique landmark, which will signify the transformation of Yangon into an international, cosmopolitan capital. The provision of first-class hotel rooms, offices, apartments and retail is badly needed in the capital to cope with the dramatic increase of interest in the country. The availability of land in central Yangon is extremely limited and the right of refusal for this 10-acre site from the SPA Group presented a stunning opportunity for Yoma. ”