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