Viet Nam's HAGL and Singapore's Rowsley Ltd, join hands to develop a mixed-used project in Yangon, Myanmar. — Photo siasat.pk

HA NOI (Biz Hub) – The Hoang Anh Gia Lai Joint Stock Company (HAGL) has entered a joint venture (JV) with real-estate and investment firm Rowsley Ltd. for developing a mixed-use project in Yangon, Myanmar.

Rowsley Ltd. is partially owned by Singapore billionaire Peter Lim. The company announced the deal for mixed-use development, valued at US$550 million in Yangon, Myanmar, in a press release dated February 12.

The company will invest $275 million for a 50 per cent stake in a company that wholly owns the HAGL Myanmar Centre, one of the country's largest integrated projects, with four office blocks, a five-star hotel, a retail mall, service and residential apartments.

HAGL will make further investments and will undertake the construction of the entire project.

The detailed terms and conditions for the joint venture are to be agreed upon in due course and subjected to due diligence and all the requisite regulatory approvals.

Spread over more than 73,000 square metres (sq.m) of land located in a prime neighbourhood next to the Inya Lake in Yangon, the HAGL Myanmar Centre has a land lease term of 50 years. It will have covered a total floor area of almost 640sq.m when the project is fully completed in 2018, comprising both commercial and residential components.

It is located 11 kilometres (km) from the airport and 7km from the downtown area and is surrounded by embassies, schools, affluent residential areas and government offices.

The first phase of development, which began about two years ago, includes two office tower blocks, with about 81,000sq.m that can be let, a retail mall of about 39,000sq.m and a 400-room five-star hotel. It is expected to be completed by the end of 2015.

The second phase comprises two more office blocks that are spread over 94,000sq.m that can be let out, and has more than 1,000 service and residential apartment units. It is expected to commence in early 2016. —VNS