Yoma Group announced the signing of an agreement with two global construction companies (Bouygues Construction and Taise) to build Yoma Central and The Peninsula Yangon. Both projects sit on an approximately 10-acre site in the heart of downtown Yangon.
The combined contract value of the two projects is over $400 million, and the main works contracts will include civil, structural, architectural, mechanical, electrical, plumbing and heritage works. The road to over $ 400 million project was not smooth. Back in 2012, company unveiled the Yoma Central and Pennisula Yangon project (formerly known as Landmark Development project) but postponed because of red tape. For over four year, there was not any action.
Signatories included First Myanmar Investment (FMI), which is also owned by Yoma Strategic chair Serge Pun, the International Finance Corporation (IFC), and Japanese firms Mitsubishi Corporation and Mitsubishi estate, which are forming a joint venture in Singapore.
In 2016, company officially announced the shareholder agreement for million dollar project. Yoma Strategic will own 48 percent of the mixed-use section of the project and expects to spend between $92 million and $117 million of its own money on that portion, spread between the 2016-17 and 2021-22 financial years, it said.
The Mitsubishi companies will hold 30% of the mixed-use section, FMI 12%, the IFC 5% and the Asian Development Bank 5%. Winfried Wicklein, Myanmar country director for the ADB, said the bank’s involvement in the Landmark project involved an equity contribution of up to $20 million carried out under its private sector operations.
Hongkong and Shanghai Hotels will own 70% of the luxury hotel; Yoma Strategic will own 24% and FMI 6%, while Yoma Strategic said it will contribute $38 million of the funds for that project.
Serge Pun, CEO of Yoma group, said his Landmark development has been strangled by long and arduous red tape and costly delays all because of his adherence to clean business in 2016.
In February 2017, Yoma Strategic ( a subsidiary of Yoma Group) held a Groundbreaking Ceremony for Yoma Central, formerly known as the Landmark Development to commemorate receiving the Myanmar Investment Commission (“MIC”) permits. Construction work has already commenced, including the demolition of FMI Centre and Grand Meeyahta Executive Residences, test piling, storm drain diversion and the construction of a culvert under the Bogyoke Aung San Road.
For the Yoma Central project, the building contractor is BTJV Myanmar Company Limited, which is a joint venture between Dragages Singapore, a subsidiary of Bouygues Construction, a global player in the building, civil works, energy and services sectors and, Taisei Corporation, one of Japan construction and civil engineering companies. Yoma Central is an integrated real estate development with a total gross floor area of approximately 2.44 million square feet.
Designed by prominent architect, Cecil Balmond OBE, it will feature Peninsulabranded luxury residences which will be sold on an exclusive invitation-only basis, two Grade A office towers, a business hotel, and serviced apartments, all of which are connected seamlessly by a retail podium. The project comes under Meeyahta Development Ltd, a joint-venture between Yoma Strategic (48%), First Myanmar Investment Company Limited (12%), the Mitsubishi Companies (30%), the International Finance Corporation (5%) and the Asian Development Bank (5%).
The Peninsula Yangon project will be built by BYMA, which is a joint venture between Dragages Singapore and the Group. The Peninsula Yangon is the former headquarters of the Burma Railway Company which will be restored into a luxury hotel that will bring a new level of distinction to the Myanmar hospitality scene. The Peninsula Yangon project is a joint venture between The Hongkong and Shanghai Hotels, Yoma Strategic and FMI.
Cyrus Pun, Executive Director of Yoma Strategic remarked: “Yoma Central is considered one of the largest foreign direct investments in Myanmar’s real estate sector with an investment of more than $700 million. It is important that we bring in world class civil and engineering expertise to develop this flagship Yangon property. Bouygues Construction has unrivalled experiences in the field of heritage conversation, coming from a history of restoration projects which includes some of the most prestigious historic hotels in Europe. Japan’s Taisei Corporation is one of the oldest and biggest construction companies in Japan and was involved in the New Doha International Airport in Qatar, and the construction of the New National Stadium in Japan.” Martyn Sawyer, Group Director, Properties of The Hongkong and Shanghai Hotels said: “We are delighted to reach this significant milestone for Yoma Central and The Peninsula Yangon. Signing ceremony reflects an important step in the journey towards building one of Yangon’s finest luxury hotels and worldclass residences. Our partners, Yoma Strategic and FMI, share our longterm vision for Myanmar as an exciting destination for business and leisure, and we look forward to the project completion in 2021.”
Nicolas Borit, CEO of Bouygues Batiment International said: “We are really honoured to have been appointed to build the exceptional Yoma Central and The Peninsula Yangon projects. We are excited about working with the Yoma Strategic Group for our third project in Myanmar, as well as new partners, the Mitsubishi Group and The Hongkong and Shanghai Hotels. Yoma Central and The Peninsula Yangon are ambitious projects, both technically and geographically challenging. It will surely allow our team to showcase their skills in refurbishing an historic building and developing new modern structures around the development.”