Feb 13, 2012

Yoma Strategic eyes growth in Myanmar

Property developer Yoma Strategic Holdings said it has agreed to acquire a 70 per cent economic interest in Star City, a residential and commercial development in Myanmar.

The 135-acre land development is located in the Thanlyin township which is adjacent to an area expected to be designated as a Special Economic Zone on the outskirts of Yangon.

The company said in a statement that the acquisition cost of S$91 million will be financed through a rights issue.

This will be on the basis of four rights shares for every five existing shares in the company at 24 cents each.

Star City will comprise more than 9,000 units of apartments and houses, shopping and commercial areas.

Mr Andrew Rickards, chief executive officer of Yoma Strategic, said: "The acquisition of Star City represents a significant boost to our real estate business and should give us a strong pipeline for next six to eight years while we develop other businesses under the group in Myanmar."

Yoma also reported it has returned to profitability with a net profit of S$1.4 million for the three months ended December 31, 2011.

This reversed a net loss of S$0.5 million a year ago due to the increased sales of housing and land development rights (LDR) in Myanmar.

It added that about 75 per cent of the company's net assets and 100 per cent of its revenue now come from Myanmar.

Yoma is also upbeat of its prospects going forward.

Its executive chairman Mr Serge Pun said: "We believe that with Myanmar's reintegration with the global economy, we will stand to benefit not only from the sales of housing and LDRs, but also from the development of our other business areas."

The remaining 30 per cent interest in the Star City Project is held by First Myanmar Investment (FMI), the flagship company of the Serge Pun & Associates (SPA) Group in Myanmar.

Source: Property developer Yoma Strategic Holdings said it has agreed to acquire a 70 per cent economic interest in Star City, a residential and commercial development in Myanmar.

The 135-acre land development is located in the Thanlyin township which is adjacent to an area expected to be designated as a Special Economic Zone on the outskirts of Yangon.

The company said in a statement that the acquisition cost of S$91 million will be financed through a rights issue.

This will be on the basis of four rights shares for every five existing shares in the company at 24 cents each.

Star City will comprise more than 9,000 units of apartments and houses, shopping and commercial areas.

Mr Andrew Rickards, chief executive officer of Yoma Strategic, said: "The acquisition of Star City represents a significant boost to our real estate business and should give us a strong pipeline for next six to eight years while we develop other businesses under the group in Myanmar."

Yoma also reported it has returned to profitability with a net profit of S$1.4 million for the three months ended December 31, 2011.

This reversed a net loss of S$0.5 million a year ago due to the increased sales of housing and land development rights (LDR) in Myanmar.

It added that about 75 per cent of the company's net assets and 100 per cent of its revenue now come from Myanmar.

Yoma is also upbeat of its prospects going forward.

Its executive chairman Mr Serge Pun said: "We believe that with Myanmar's reintegration with the global economy, we will stand to benefit not only from the sales of housing and LDRs, but also from the development of our other business areas."

The remaining 30 per cent interest in the Star City Project is held by First Myanmar Investment (FMI), the flagship company of the Serge Pun & Associates (SPA) Group in Myanmar.
Source: CNA/wk

 
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