There is more good news for Myanmar’s burgeoning property market after Mitsubishi Corp. revealed that it has agreed with Mitsubishi Estate to begin work on a mixed-use development situated in downtown Yangon. The project will be a joint effort with Singapore’s Yoma Strategic Holdings and local company First Myanmar Investment who will work in collaboration with Mitsubishi, according to media reports.
The new development is seen as a flagship project for the country and will boast residential, commercial, retail and hospitality space. The complex is located near the Yangon Central Railway Station in the heart of Yangon’s main business and commercial district, the Japan Times reported.
In order to get the project started, the two Mitsubishi companies are going to form an alliance via a joint venture set up in Singapore. The newspaper added that together they will oversee the construction of two office buildings, a condominium, a hotel and a large commercial space.
Part of the project will involve the redevelopment of a site that currently has an office building, commercial facilities and a hotel operated by Serge Pun & Associates, one of Myanmar’s largest conglomerates. In addition to this, The Asian Development Bank, the International Finance Corporation and The Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development have all agreed to invest in the project.
The development comes as good news for Myanmar. The country’s economy continues to impress experts and the government recently passed a law that allows for foreigners to purchase condominium units.
It was also noted that at the start of the year, Colliers predicted the Yangon property market would perform better in 2016 with the strong possibility of increased construction happening in the city during the next 12 months. A few other firms are currently planning or are in talks to build projects in Yangon as well.
