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Keppel Land to jointly develop Yangon serviced residences
KEPPEL Land on Wednesday said that it has signed a conditional joint venture agreement with Burmese conglomerate Shwe Taung Group to develop premium serviced residences and offices in the next phase of Junction City.
This is a mixed-use development in Yangon's central business district. Keppel Land's investment in this next phase will be about US$48.6 million.
The collaboration follows Keppel Land and Shwe Taung's first joint venture to develop Junction City Tower, a 23-storey Grade A office building in the first phase of the project. This was topped off in May 2016. When completed early next year, the office building Junction City Tower will offer a net leasable area of about 33,400 sq m of prime office space.
In phase two of the project, Keppel Land will hold 40 per cent stake in the serviced residences and office component, which will offer a gross floor area of about 50,000 sq m. The development will also house the first Sedona Suites in Myanmar comprising about 260 serviced apartments.
Construction of phase two of Junction City is expected to start in 2018. Ng Ooi Hooi, president, regional investments, Keppel Land, said that the group is confident of the long-term potential of Myanmar, and is committed to participating in and contributing to the growth of the country.