Yangon govt signs agreement with Berjaya Land for housing project

The Yangon Region government has signed a concession agreement with Malaysia-owned BDS Smart City Co Ltd to formalise a public housing and mixed-development project in Yangon, according to a stock exchange filing by Berjaya Land Bhd, the parent of BDS Smart City, on February 10.

The project will be developed across 183 acres of land at the corner of Shweli Street and Mya Nanda Street in Dagon Seikkan Township, Yangon.

The agreement grants BDS Smart City Co exclusive rights over the land for 50 years, with the tenure extendable for two consecutive terms of 10 years each.

In return, BDS Smart City will pay US$ 185.8 million to the Yangon Region Government, of which around US$182 million will be in the form of public housing units with an estimated net floor area of about 242,800 square meters.

The rest of the project will feature high-end residential, shop lots, a school, hospital and community center, all of which will be developed in three phases at a gross development cost estimated at US$ 614.9 million. This will be funded by bank borrowings and funds generated by Berjaya Land, the company said.

The estimated gross development value of the project is US$746.1 million and is expected to be developed over 9 years, according to Berjaya Land.

BDS Smart City first won the tender for the project in September 2019.

According to Yangon Chief Minister U Phyo Min Thein, the tender was called to speed up the development of public housing for civil servants.

The project has yet to receive approval from the Myanmar Investment Commission, Yangon City Development Committee and Ministry of Construction.

Source: Myanmar Times

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