Yoma Strategic Holdings announced it has agreed to go ahead with the acquisition of the 10-acre in the Landmark Development sites from Serge Pun & Associates (Myanmar) Limited (SPA), but under revised terms.
Earlier on Nov 19, Yoma Strategic and SPA had agreed to purchase an 80% interest in the Landmark Development site for US$81.28 million based on the issuance of a new master lease of 70 years.
Under the revised agreement, Yoma Strategic is proposing to acquire the 10-acre site with remaining lease terms of between 24 years and 26 years for US$43.20 million via an 80% interest in Meeyahta International Hotel Limited (MIHL).
MIHL is a foreign investment company incorporated in Myanmar. The remaining 20% of MIHL will be held by First Myanmar Investment Co., Ltd (FMI).
The remaining amount of up to US$38.08 million will be paid to SPA when the leases for the 10-acre site have been extended. The initial payment of US$43.20 million will be funded through a one (1) for eight (8) rights issue at $0.38 per rights share.
The sites currently host FMI Centre, the previous Grand Meeyahta Hotel building and one of Yangon’s most famous heritage buildings, the former Burma Railway Company Headquarters built in 1877. The sites will be developed into a mixed-used development.
Andrew Rickards, CEO of Yoma Strategic said, “We are pleased to be able to announce progress with the Landmark Development project. Under this revised agreement we will be acquiring the rights to start developing the land with a lease of approximately 25 years whilst we will continue to work with our sister companies in Myanmar, FMI and SPA, to have the leases extended for an additional 70 years. We remain confident that the longer lease will ultimately be obtained and that the Landmark Development will become one of downtown Yangon’s iconic commercial and residential areas.”
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