Sembcorp unit to develop Myanmar Singapore Industrial Park

SEMBCORP Development, wholly owned by mainboard-listed Sembcorp Industries (SCI), will develop its first integrated urban development in Myanmar, SCI said in a regulatory filing on Monday.

Sembcorp Development's joint venture (JV) company, Myanmar Singapore (Hlegu) Industrial Park JV, will ink an agreement shortly with the Yangon Region Government to lease 436 hectares of land in the Hlegu township for industrial, residential and commercial purposes. This comes after the Myanmar Investment Commission has issued a permit approving the development of the Myanmar Singapore Industrial Park.

The JV company will be responsible for the master development of the industrial park, which will be developed over a period of nine years, in line with market demand, SCI said in the filing.

Myanmar Singapore (Hlegu) Industrial Park JV was incorporated in Myanmar with a paid-up capital of US$2 million from three shareholders Sembcorp CSSD Myanmar, Pahtama Group and Myanmar Agribusiness in the proportions of 67 per cent, 18 per cent and 15 per cent respectively.

Sembcorp Development's effective ownership in the JV company is 50.6 per cent.

SCI added that the development of the industrial park is not expected to have a material impact on its earnings per share and net asset value per share for the financial year ending Dec 31, 2020.

Shares of SCI ended Monday at S$1.89, down S$0.02 or 1.1 per cent, before the announcement.