Dec 20, 2012

HAG inks $300 mln deal on Myanmar complex

Vietnam’s Hoang Anh Gia Lai Group (HAG) and the Myanmar’s Ministry of Hotels & Tourism closed Tuesday a BOT (build-operate-transfer) contract and a land leasing agreement to build a US$300 million complex in the latter country.

The Hoang Anh Gia Lai Myanmar Center is expected to consist of a five-star hotel, shopping mall, office building, and apartments for lease.

HAG said it has been granted the permission to lease an 8 hectare land plot in downtown Yangon, adding that all legal procedures on the Myanmar side have been completed.

“We have finished clearing site on the leased land plot,” said Le Hung, CEO of HAG Land.

The Vietnamese multi-sector giant is completing procedures for outbound investments in order to start work on the first phase of the project, he said.

“The realty market in Myanmar has become heated after the country opened to the world, and we are speeding to grab this chance,” he told Tuoi Tre.

HAG’s net revenues in Q3/2012 rose from VND1.38 trillion last year to VND2.39 trillion ($114.9 million), while post-tax profits dropped from VND340 billion to some VND177 billion.

Besides Myanmar, the company is investing in Cambodia, Laos, and Thailand.

Source: Tuoi Tre News