The Hoang Anh Gia Lai Myanmar Center project will be carried out in two phases: in the first phase slated for completion by September next year, there will be a 27-story shopping mall and office for rent and a 23-story five-star hotel with 480 rooms. In the second phase, to be executed in 2015-16, there will be four residential blocks with 1,800 luxury apartments and an office tower.
Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Group, said the Myanmar Government leases the 16-acre land site in the heart of Yangon to the group for 70 years. Total investment for this project has been raised to US$440 million from the previous US$300 million, and about half of this investment capital will be credits from three top Vietnamese banks, namely BIDV, Eximbank and Sacombank.
Duc estimated the project would create about 2,500 jobs for local residents and pay millions of US dollars in taxes to Myanmar each year.
Tin Shwe, Deputy Minister of Hospitality and Tourism of Myanmar, told the ground-breaking ceremony that the HAGL Myanmar Center will help ease the pressure of supply on Yangon trade and tourist sector.
At present, the city lacks high-grade hotels and offices, so the rent rates remain very high, about US$75 per square meter per month, while the hotels there are fully occupied.
According to Tin Shwe, the HAGL Myanmar Center is so far the biggest foreign direct investment project in Myanmar’s tourism sector.
With this project, HAGL has invested US$1.5 billion in neighboring ASEAN countries.