The partnership with the ShweTaung Group, one of Myanmar’s reputable construction groups, will see a new office development rise in Yangon’s central business district to meet rising demand for quality office space.
Keppel Land Limited (Keppel Land) has entered into a conditional joint venture agreement with the ShweTaung Group (STG) to develop a 23-storey office tower in Yangon’s central business district (CBD), at the intersection of Shwedagon Pagoda Road and Bogyoke Aung San Road, subject to approval from the Myanmar Investment Commission. Keppel Land’s total investment in the project will be US$47.4 million (approximately S$61.6 million).
Keppel Land will hold a 40% stake in the office tower, which is part of Junction City, a mixed-use development which will also comprise the five-star Pan Pacific Hotel, a shopping centre and residential towers. It will also house Yangon’s largest car parking facility offering more than 1,400 car park lots.
When completed, the office tower will offer a net leasable area of about 33,400 sm of premium Grade A office space, meeting the demand for high quality office space in Yangon which is presently in limited supply. Construction for the office tower has commenced and is expected to be completed in 2017.
Strategically located, the new office development is about 19 kilometres south of the Yangon International Airport and about eight kilometres from Keppel Land’s Sedona Hotel Yangon. Major landmarks in the vicinity include Sule Shangri-La, Sakura Towers, FMI Centre, Bogyoke Market, Holy Trinity Church and the Yangon Railway Station. Government offices, heritage buildings, schools and retail outlets are also in close proximity.
The development of the new office tower in Yangon follows Keppel Land’s earlier announcements on the redevelopment of International Financial Centre Jakarta Tower 1 in Indonesia, as well as the expansion of its mixed-use developments in Vietnam and the Philippines, namely the 37-storey office tower in Saigon Centre Phase Two in Ho Chi Minh City and the 42-storey office building and retail mall extension of the SM-KL project Phase Two in Manila.
Besides the upcoming office development, Keppel Land’s other projects in Myanmar include Sedona Hotel Mandalay and Sedona Hotel Yangon, which is adding a new tower block to its existing wing. When complete in 2016, it will bring Sedona’s total inventory of rooms in Myanmar to 1,037.