Myanmar conglomerate Yoma Group expects to restart the Yoma Central mixed-use development project by the end of this year, Nikkei Asia reported on 16 November.
A spokesperson from Singapore-listed Yoma Strategic Holding (YSH) told the outlet that preparations to resume the project are “proceeding as scheduled”.
No further updates were mentioned.
Yoma has previously said that it aims to restart the project with construction of a branded residences tower in late 2023.
This component of the project is likely seen as the most economically viable to resume in light of Yoma's strong recent growth in residential sales from its other projects (see separate article).
The $700m Yoma Central project was suspended shortly after the military takeover in February 2021.
In March 2023, YSH announced that the shareholders in Meeyahta Development Limited (MDL), the project developer, had agreed to restructure the debt facilities.
Yoma said the restructuring would allow MDL to focus on reviewing the current development plan in light of the current economic environment.
The shareholders of MDL are Yoma Strategic Investments (which holds a 48% interest in the project), MMJ Yangon Development (MMJYD) (30%), First Myanmar Investment (FMI) (12%), the International Finance Corporation (IFC) (5%), and the Asian Development Bank (ADB) (5%).
MMJYD is a Japanese consortium led by Mitsubishi Corp and Mitsubishi Estate. The IFC and ADB are MDL’s lenders.
The Yoma Central project is planned to include four high-rise buildings for residential units, offices, and retail.
The complex will also include a $130m Peninsula Hotel operated by Hongkong and Shanghai Hotels and developed in partnership with Yoma Strategic Investments and FMI.
The 88-room hotel is part of a redevelopment of the former colonial-style Myanmar Railway headquarters. The project began in 2014 and was slated to be completed in 2022, but construction halted in mid-2021.
Hongkong and Shanghai Hotels said in August it would base its decision to resume the project on an “assessment of the economics” and reiterated that it does not intend to abandon the project (see separate article).
The expected resumption of the Yoma Central project is notable as most large foreign-invested and government-backed projects suspended since the military takeover remained paused for myriad reasons including economic uncertainty, high construction material prices and reputational risks. Other notable projects that remain suspended include Smart & Eco City and Y-Complex.
Yoma Central project design with Peninsula Hotel located in former Myanmar Railway Company headquarters. Source: Yomacentral.com