Yoma to redevelop Yangon project, Centrium Square retail units sold
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A consortium – that includes Yoma Strategic Holdings, its wholly-owned subsidiary Yoma Strategic Investments (YSIL); Mitsubishi Corporation and Mitsubishi Estate; First Myanmar Investment (FMI); and the International Finance Corporation (IFC) – will redevelop a Yangon mixed-used development.
The Asian Development Bank (ADB) will become party to the deal, with the rest of the corporate entities establishing a joint venture (JV) corporation – Meeyahta Development Limited (MDL).
Yoma will maintain a 48 per cent share in the JV firm with smaller shares held by FMI (12%), Mitsubishi (30%), IFC (5%) and ADB (5%).
The proposed development excludes Yoma’s plan to redevelop the former headquarters of the Burma Railway Company into a five-star hotel, The Peninsula Yangon, which was announced in 2013.
According to Yoma Strategic, it is currently awaiting the approval from the Myanmar Investment Commission for the incorporation of the joint venture (JV) entity.
According to the deal, yhe shareholders agreement will be terminated should the first subscription of shares fail to take place on or before the deadline of 30 June 2017.
The agreement is deemed an interested person transaction as FMI’s chairman and controlling shareholder, Serge Pun, also holds about 36.27 per cent of direct and deemed interests of Yoma Strategic. As such, Yoma requires shareholder approval to finalise the deal.
Centrium Square retail units sold in bulk for S$70.1m
Thirty two retail units at Centrium Square with a total strata area of 16,738 sq ft are likely to have been sold through a bulk purchase for S$70.1 million, based on caveats published by the URA. This transaction saw first storey retail units sold at an average price of S$6,015 psf, with second storey units fetching an average price of S$3,932 psf.
“Yoma will maintain a 48 per cent share in the JV firm with smaller shares held by FMI (12%), Mitsubishi (30%), IFC (5%) and ADB (5%).”
Centrium Square is a freehold development comprising two levels of retail units, 39 medical suites and 143 office located close to Farrer Park MRT station and is on the site of the former Serangoon Plaza. The developer is Feature Development, an affiliate of Tong Eng Group.
According to a report from The Edge Property, the buyer is believed to be Canali Logistics, which purchased Hotel Grand Chancellor at Belilios Road in Little India in 2014.
The opening of Farrer Park Hospital, part of an integrated complex comprising Farrer Park Medical Centre, which houses specialist clinics and One Farrer Hotel and Spa, have positioned the area to be a medical hub.
Separately, RB Capital is developing Farrer Square, a mixed-use project comprising medical suites and 300-room Park Hotel Farrer Park.
Questions & Answers
Q.Which entities are involved in the joint venture for the Yangon redevelopment, and who is establishing it?
Which entities are involved in the joint venture for the Yangon redevelopment, and who is establishing it?
Yoma Strategic Holdings, FMI, Mitsubishi, IFC, and ADB are involved. These corporate entities, excluding Yoma's previous hotel plan, will establish a joint venture corporation named Meeyahta Development Limited (MDL).
Q.What were the average prices per square foot for the retail units sold at Centrium Square?
What were the average prices per square foot for the retail units sold at Centrium Square?
First-storey retail units at Centrium Square sold for an average price of S$6,015 per square foot. Second-storey units fetched an average price of S$3,932 per square foot in the bulk purchase.
Q.Who is believed to be the buyer of the retail units at Centrium Square, according to a report?
Who is believed to be the buyer of the retail units at Centrium Square, according to a report?
According to a report from The Edge Property, the buyer is believed to be Canali Logistics. This entity previously purchased Hotel Grand Chancellor at Belilios Road in Little India in 2014.
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