Thursday, July 27, 2017

FMI real estate takes first step outside Yangon with Nay Pyi Taw condo

Interest in Myanmar real estate is leading investors to expand beyond Yangon, as First Myanmar Investment (FMI) public company plans to expand nationwide, according to its chair Serge Pun.

Serge Pun speaks in a November 19 interview. Photo: Zarni PhyoSerge Pun speaks in a November 19 interview. Photo: Zarni Phyo

The prominent businessman unveiled plans for a 114-unit “Krisplaza condominium” in Nay Pyi Taw during FMI’s annual meeting on November 23.

“This project will see us venture beyond Yangon for the first time and marks the beginning of our aspirations to become a nationwide developer,” FMI’s annual report said.

In addition to Krisplaza, which is a joint venture with Krislite, FMI also announced a 90-residential unit FMI City Gates condo project for its FMI City, which will also include retail space. In addition to FMI City, the firm owns 90 percent of FMI Centre on Bogyoke Aung San Road near the Shangri-La hotel.

The Star City development in Thanlyin township, in which FMI owns a 30pc stake, is also working on a new phase called Galaxy Towers that will add 950 apartments.

A salesperson for the site said the Towers project will launch at the end of 2014, and will benefit from its proximity to the Thilawa SEZ.

“As the SEZ develops, people working at Thilawa will choose to live in Star City, and management expects sales to remain strong,” the person said.

Mr Pun named real estate – which historically contributed the lion’s share of FMI’s revenues – as one of its four pillars going forward, along with financial services, healthcare and aviation.

“Real estate counted for the majority of FMI’s revenues since inception,” he said. “Most of our new real estate projects are joint ventures. Large real estate projects require large amounts of capital.”

FMI is also slated to hold up to a 20pc stake in The Landmark Development, a prominent development planned for a plot on Bogyoke Aung San Road. Mr Pun said the Landmark project alone will cost over $450 million, a significant sum of money, meaning the company will continue working in joint ventures with other companies, such as its sister company Yoma Strategic Holdings.