The agreement for US$ 550 million joint venture of HAGL Myanmar Centre was to be cancelled by Singapore based Rowsley Ltd. Rowsley firstly agreed to invest $275 million for a 50 percent stake in US$ 550 million mixed-use development in February. HAGL Myanmar Centre is one of Myanmar’s largest integrated projects with four office blocks, a five-star hotel, a retail mall, service and residential apartments. It is wholly developed by Vietnamese real estate developer, Hoang Anh Gia Lai Co (HAGL).
Rowsley said they would not enter the pro- posed joint venture because “the conditions precedent under the Heads of Terms Agreement have not been satisfied.” Rowsley is a Singaporean multidisciplinary lifestyle real estate and investment company with capabilities in planning, architecture, engineering, investment and development, which is partly owned by billionaire Mr. Peter Lim. Its primary business activities are in investments, investment holdings and strategic investments and other related activities.
The firms told the media that they could not proceed the proposed agreement over the details of the investment structure. Rowsley offered HAGL to allow direct investment in HAGL Myanmar Co Ltd instead of indirect investment through purchasing stakes of Hoang Anh Gia Lai Land due to high cost of transfer capital and to reduce risks.
HAGL is currently finding new potential partners and negotiating with a number of other foreign real estate companies, including firms in Hong Kong and Singapore. But further information about potential investors has not been publicized yet. HAGL’s acting general director Vo Truong Son said, “ HAG’s partner must have strong financial capacity and share the same development vision with the company in operation and management of the complex, including pricing, marketing and product development strategies.” The director also ensured that the breakdown of the contract between the two companies would not have negative effects on the project.
The project for HAGL Myanmar Centre is situated next to Inya Lake in Yangon and spreads over more than 73,000 square metres (sqm) in Yankin Township. It will have a total net gross floor area of almost 640,000 sqm when fully completed in 2018, comprising both commercial and residential components. The Melia Hotel Yangon which is under Melia Hotels International will be part of the HAGL Myanmar Centre and is expected to open in coming September. HGAL is one of property largest developers in Vietnam. It has made investments in Laos, in Myanmar, in Cambodia and in Thailand. The group has interests in Real Estate and hotels, Rubber and other Cash Crops, Energy and Mining.
