SINGAPORE (Sept 7): Keppel Land, the property arm of Keppel Corporation, has entered into a conditional joint venture agreement with Shwe Taung Group to develop premium serviced residences and offices in the second phase of Junction City in Yangon, Myanmar.
Following the JV agreement, Keppel Land will hold a 40% stake in the serviced residences and office component of the second phase of Junction City, which will have a GFA of 50,000 sqm.
Junction City is located in Yangon’s Central Business District, at the intersection of Shwedagon Pagoda Road and Bogyoke Aung San Road. It comprises Grade A offices, the five-star Pan Pacific Hotel, a lifestyle retail and entertainment centre as well as serviced residences. It will also have downtown Yangon's largest car parking facility with over 1,500 car park lots.
This is Keppel Land and Shwe Taung Group’s second joint venture, after the first joint venture to develop Junction City Tower, a 23-storey Grade A office building in the first phase of Junction City. Junction City Tower was topped off in May 2016 and is expected to offer a net lettable area of about 33,400 sqm of prime office space when it is completed in early 1017.
Keppel Land’s investment in the next phase of the landmark mixed-use development is estimated to be about US$48.6 million (S$65.5 million), and the development will house the first Sedona Suites in Myanmar with 260 serviced apartments. The construction for the second phase will start in 2018.
Shares of Keppel closed 0.75% higher at S$5.41. — theedgemarkets.com.sg
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