Malaysian firm to construct Yangon office tower
Malaysia’s Naim Indah City Development has signed a memorandum of understanding (MoU) with Myanmar firm United Pacific Development Company to build a 32-storey office tower on Pyay Road in Yangon.
Indah City Development Company is a subsidiary of Kuala Lumpur-listed company Naim Indah Corporation, which is primarily involved in property investment and timber extraction in Malaysia.
The two firms will set up a joint venture company under the 2012 Foreign Investment Law, according to a June 15 notice on Bursa Malaysia, the country’s stock exchange. The joint venture will be 51 percent owned by the foreign partner and United Pacific will hold a 49pc stake.
The land plot on Pyay Road is owned by U Hla Myint Shwe and Daw Aye Myat Mon, according to the stock exchange announcement yesterday.
Land prices along Pyay Road are the most expensive in Yangon, according to October 2014 appraised land values published by the Internal Revenue Department.
The tax authority publishes updated figures annually. Land on Pyay Road is worth an average of K400,000 per square foot, but in reality often sells for much more.
United Pacific Development Company was formed in 2012 and is jointly owned by U Hla Myint Shwe and Daw Aye Myat Mon, according to the Directorate of Investment and Company Administration (DICA).
The company is involved in manufacturing, distribution, construction, hotels and services. Neither of the owners was available for comment by press time yesterday.
The MoU will be valid for three months from 13 June, according to the stock exchange note. After this, “the parties shall negotiate in good faith and use their best endeavours to enter into definitive agreements,” it said.
By the end of 2014, total office supply in Yangon was only 107,000 square metres (1.15 million square feet) of net usable space, according to Colliers research.
In 2015, new supply coming online is estimated to reach over 60,000 sq m – more than twice that of 2014, according to Colliers research.
This accounts for 12 new office buildings due to open during the current year.
New office buildings include Financial Centre by Shwe Taung Development, Strand Square by Flying Tiger Engineering, Vantage Tower by Myint & Associates, The Office @ Novotel Yangon Max by Max Myanmar, and Uniteam Office Tower by Uniteam Marine, according to Colliers.
(Quote from Myanmar times online website on 17 June 2015)