What’s Happening in Market & Valuation Vol. 32(July. 2019)

YCDC Approves 10 High Rise Buildings agreement in 2020, after tenders to Japanese firms likely to be conducted as soon as the third quarter City Development Committee (YCDC) has of this year. Narita International Airport now approved 10 high‐rise buildings in nine Corporation may be one of the Japanese townships across Yangon. The high‐rise buildings companies interested in the tender. will be 12‐32 floors high; they will be built in Botahtaung Township, , Learnt From: Myanmar Times (July 9, 2019) Mayangone Township, , Yankin MTSH planning a mall for Thilawa SEZ Township, , , and Township. Two of Myanmar Thilawa SEZ Holdings (MTSH), a Yangon these projects will be implemented on the land Stock Exchange listed real estate developer with a owned by the Department of Urban and Housing focus on developing Special Economic Zones (SEZ), Development and three others on land owned by is planning to build a mall in the Thilawa SEZ at the Ministry of Industry, Ministry of Defense and south of Yangon. Construction of the mall would the Department of General Administration. The begin after the dry season, which runs through five remaining projects will be built on private October to May. The mall would be leased out to property. According to the data from YCDC, 32 well‐known mall operators through bidding. story buildings will be constructed in Hlaing Besides the mall project in Thilawa SEZ, the Township and Thaketa Township. The lowest company will be conducting a study on a railway among these ten projects is located in Mayangone project for Thilawa Port as well as investments into Township and the building will only be 11 stories Kyaukphyu Port, and Myitkyina high. economic development zone, .

Learnt From: Myanmar Business Today (July 8, 2019) Learnt From: Myanmar Times (July 11, 2019) Myanmar, Japan revive talks on building Hong Kong‐listed company in JV with local Hanthawaddy airport partner for US$87 million project

Myanmar and Japan will form a joint venture and Hong Kong‐listed China Lesso Group Holdings Ltd, a sign an agreement next year to kickstart the long building materials supplier, has entered into a joint postponed Hanthawaddy International Airport venture with local partner Ever Investment to build project located 80km north of Yangon near Bago. an integrated commercial and logistics complex in According to several government officials, both the Yangon worth US$87 million. China Lesso’s Yangon‐ Myanmar and Japanese governments have met at based subsidiary, Lesso Mall Investment and local least four times to nail down details of the project, partner Ever Investment formed a joint venture which would be financed by Japanese government called Lesso Home Development for the project, loans and involve the country’s construction and with Lesso Mall holding a 60 percent stake and Ever airport operators. While details on cost have not Investment holding the remainder stake. Lesso been announced, the last tender valued the project Home Development has been authorized by the at US$1.5 billion. The Japan International Myanmar Investment Commission (MIC) to carry Cooperation Agency has estimated the project to out construction, selling, leasing and management cost US$2 billion. The new airport would be built on of offices, commercial, wholesale and retail some 3600 hectares of land belonging to the business in . According to the Department of Civil Aviation (DCA). Also, an Directorate of Investment and Company updated design for the airport would have to be Administration (DICA), the project involves an approved, with a connection to the railway integrated commercial and logistics complex that network included. Myanmar and Japan will sign the includes a market and 1,200 parking bays on a 70‐ This article is drawn up and published by Japan Valuers (Myanmar) Co. Ltd. All rights reserved. “We value and appraise the "ASSET" upon the request according to the global standard”. For more information, visit our website: www.jvmyanmar.com Japan Valuers (Myanmar) Co. Ltd. is the local subsidiary of Japan Valuers Co., Ltd. headquartered in Tokyo, Japan. Visit and Contact at: www. japanvaluers.com for more information about Japan Valuers and its global network. What’s Happening in Myanmar Market & Valuation Vol. 32(July. 2019)

acre plot of land in , Yangon. Myanmar’s $400m stock market to open to According to DICA Acting Director General, the foreigners to trade after October project will be developed over three years and create up to 2,000 jobs when operational.

Learnt from: Myanmar Times (July 17, 2019)

Authorities approve Htantabin, projects

Members of Parliament (MPs) for the regional Hluttaw of Yangon has finally given the green light for the Htantabin and Hlegu industrial park projects to the north of Yangon city. The Hluttaw approved both projects, part of the 11 new industrial parks proposed in 11 mostly rural townships as announced at the Yangon Investment Forum, on Yangon Stock Exchange July 12. The projects are expected to start early next year. Yangon Region has 29 existing industrial Foreigners will only be able to trade shares on the parks owned by the private sector and mostly Yangon Stock Exchange (YSX) after October located in and around the city. These zones have according to Executive Manager of the bourse. This mostly been taken up by factories and investors is in spite of the Security Exchange Commission of often find it difficult to find land on which they can Myanmar (SECM) announcing on July 12 that build or expand their operations. A memorandum foreigners would be allowed to trade on the YSX. of agreement has been signed between the While the SECM has agreed in principle to allow regional government and Yangon Htantabin foreign participation, details still need to be ironed Technology Company, which comprises of out and that will take about three months. The investors from China, Hong Kong and Myanmar, for actual date for foreign participation will be the 1,000‐acre Htantabin industrial park that will announced by the YSX. need an investment of US$500 million. Learnt From: Myanmar Times (July 19, 2019) Negotiations were still under way with investors for the Hlegu industrial park, which is understood to Construction Commences for Yangon‐Dala include a consortium formed between Pahtama Bridge Group Co. Ltd and a Singaporean firm. According to details from the Htantabin project, infrastructure Construction for the Yangon‐Dala Bridge, a Korean‐ such as electricity and water will be included while Myanmar friendship bridge, has officially started factories and hotels will also be built, with the and is expected to be finished by 2023. The bridge entire project to be completed over four phases by will make transportation between Yangon and 2025 and create 150,000 jobs. Two new ports will nearby cities much easier; the $188 million bridge also be constructed to facilitate goods will cross the Yangon River connecting Twante, transportation to Yangon. Kaukmhu and Kongyan Gone in addition to Data City. The 6,000 ft long bridge will connect Phonegyi Learnt From: Myanmar Times (July 18, 2019) Street in and Bo Min Yaung Street in . In the beginning, the expected cost for the project was $127 million from South Korea Economic Development Fund and $30 million from state funds. However, the width of the main bridge was expanded to 370 meters from 320 This article is drawn up and published by Japan Valuers (Myanmar) Co. Ltd. All rights reserved. “We value and appraise the "ASSET" upon the request according to the global standard”. For more information, visit our website: www.jvmyanmar.com Japan Valuers (Myanmar) Co. Ltd. is the local subsidiary of Japan Valuers Co., Ltd. headquartered in Tokyo, Japan. Visit and Contact at: www. japanvaluers.com for more information about Japan Valuers and its global network. What’s Happening in Myanmar Market & Valuation Vol. 32(July. 2019)

meters increasing the cost to $188 million. Presently, officials have provided K3.64 billion in compensation to the landowners that fall into the project area.

Learnt From: Myanmar Business Today (July 23, 2019)

This article is drawn up and published by Japan Valuers (Myanmar) Co. Ltd. All rights reserved. “We value and appraise the "ASSET" upon the request according to the global standard”. For more information, visit our website: www.jvmyanmar.com Japan Valuers (Myanmar) Co. Ltd. is the local subsidiary of Japan Valuers Co., Ltd. headquartered in Tokyo, Japan. Visit and Contact at: www. japanvaluers.com for more information about Japan Valuers and its global network.