Singapore’s real estate firm joins with Vietnam’s HAGL in $550 million property project in Yangon

Photo of Hoang Anh Gia Lai Myanmar Centre being developed on Kaba-Aye Pagoda Road in Bahan Township, Yangon.
Photo of Hoang Anh Gia Lai Myanmar Centre being developed on Kaba-Aye Pagoda Road in Bahan Township, Yangon.

Rowsley Limited, real estate developer and architectural and engineering consultancy firm in Singapore, has joined Hoang Anh  Gia Lai Joint Stock Company (HAGL) of Vietnam through a joint venture to develop a latter’s $550 million property project in Myanmar.
The Singapore-based real estate developer announced the deal with HAGL, which wholly owns the HAGL Myanmar Centre in Yangon, on Thursday, saying Rowsley will invest $275 million for a 50 per cent stake in the mixed-use development project.
Situated 11km from the airport and 7 km from downtown next to Inya Lake in Yangon, the HAGL Myanmar Centre project is being developed on a land area of 73,358 sqm with a land lease term of 50 years plus an option for another 10+10 years. The project, which will have a five-star hotel, four office towers, a retail podium, and five blocks of residential apartments, will have covered gross floor area of almost 640,000 sqm when completed in 2018.
The first phase of the mixed-use development project, which is divided into two phases, began about two years ago and it is expected to be completed by the end of this year. Lock Wai Han, Rowsley CEO, said in the press release that a severe shortage of top-grade office space, hotels and modern malls in Yangon will be addressed with the completion of the first phase of the project this year.
A report of Mckinsey Global Institute estimated that Myanmar needs total infrastructure and real estate investment of $320billion between 2010 and 2030.
The first phase will have two office towers, a retail mall, and a 400-room five star hotel that are to be operational this year.
The second phase, consisting of another two office towers and more than 1,000 services and residential apartments, is set to start in early 2016, the press release said.
According to the joint venture, Rowsley and HAGL will both hold 50 per cent stake in the project, with Rowsley, having an option to increase its interest in the JV in the future, playing key roles in the detailed design and development of both phases and undertaking the lead in asset planning and managing the completed development. HAGL is expected to make further investments and undertake construction of the entire project.
The press release said that the investment is the firm’s first real estate deal after its Iskandar development in Johor, Malaysia’s southern-most state where the property player is building the $2.2 billion Vantage Bay integrated project, including the 75-storey residential development Skies. Rowsley is part owned by Singapore billionaire Peter Lim.

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