BERJAYA Land Bhd says its 80%-owned subsidiary BDS Smart City Co Ltd has signed a concession agreement (CA) with the government of the Yangon Region (YRG) in Myanmar to collaborate in undertaking a housing and mixed development project on 12 parcels of land.
In a filing with Bursa Malaysia on Feb 7, it said that based on the preliminary plan, the estimated gross development value (GDV) is US$746.08 mil (about RM3.05 bil).
The gross development cost (GDC) is estimated to be US$614.92 mil (about RM2.52 bil) and
the estimated profit before tax is about US$131.16 mil (about RM536.44 mil) to be recognised over the duration of the development, over nine years, which will be automatically extended for an additional year.
The GDC is expected to be funded through bank borrowings and the internally-generated funds of the BLand Group.
The land, which is owned by YRG, comprises 12 parcels of vacant development land totalling about 74ha, at the junction of Myanandar Road and Shwe Li Road in the Dagon Seikkan Township.
It is easily accessible from Ayer Wun Selsat Road and Shwe Li Road. Other new residential developments in the vicinity are Yadanar Hninsi Residence and Ayeyar Chanthar Executive Condominium.
According to Berjaya Land, the proposed development is synergistic and complementary to the existing business and operations of the BLand Group.
“The proposed development provides an opportunity for the BLand Group to venture into the Myanmar property market as part of its regional expansion plan.
“Additionally, it … will generate sustainable income to the BLand Group in future years,” it said. – Feb 7, 2020