Thilawa land prices still up in air after share sale

Land prices for Thilawa SEZ will be competitive with other countries’ projects in ASEAN, according to SEZ Management Committee Chair U Set Aung.

Although he declined to reveal exact costs, he said that as an example it could be a couple US dollars cheaper than prices for similar Vietman industrial estates.

“One thing I can say for sure is that rates must be competitive to attract FDI,” he said.

Although U Wing Aung, chair of Myanmar Thilawa SEZ Holdings, said in February that SEZ property would be at least 30 percent below that of other Yangon industrial estates, U Set Aung said he could not confirm these prices.

“I cannot say the land prices in the SEZ will be cheaper than other areas in Yangon,” he said. “It might be cheaper than some areas and more expensive than others.”

Sources within the business community say monthly rental prices for Yangon’s industrial estates is between K225 (US$0.24) and K300 ($0.32) per square foot.

Thilawa, located about 15 miles from Yangon, is the site of Myanmar’s first SEZ under development by Myanmar-Japan Thilawa Development Company (MJTDC). The firm is 51 percent owned by Myanmar businesses and government, and 49pc by Japanese businesses and government.

The first area of Thilawa under development covers 396 hectares out of a total 2342 hectares.

U Set Aung said last month at a press conference that he hopes commercial operations at the SEZ begin by the end of 2015, with regular supplies of water and electricity ensured.

Yanai Takasahi, president of the MJTDC, said earlier this year that much of the international interest came from Japan and Hong Kong, though other businesses from Australia and China had also made enquiries

“We’re in a better position than we expected. We are going to start construction works of the factories in the SEZ in May,” said Mr Yanai in March.

Myanmar Thilawa SEZ Holdings Public Limited (MTSH) also issued 2.145 million shares at K10,000 a share for a total valuation of K21 billion ($22 million) from March 3 to April.

U Set Aung claimed public interest exceed the available share issue with 17,000 applying to take part, making it the first oversubscribed offering in Myanmar. The firm also cut off individual purchases at lots of 500 shares, intending to ensure shares we available to interested individuals. Those applying to purchase more could ask to do so, though may ultimately be restricted to ensure shares were available for all interested Myanmar buyers.

Source: Myanmar Times

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