Yoma inks 50-year lease extension with Myanmar Rail Company

The lease will be redrawn into two separate agreements.

Yoma Strategic Holdings nabbed a 50-year lease extension for its landmark hotel project at Myanmar Rail Company (MR)’s former headquarters, according to a media release by Yoma.

Yoma stated that it inked a framework agreement with MR to extend the master lease for an initial period of 50 years to 2048, beginning 1 January 1998.

Per the agreement, the leases for the two-site project will be redrawn into two separate master lease agreements for the proposed hotel development of the MR headquarters into a Peninsula Hotel, and the proposed mixed-use development.

The two sites are located at Yangon, Myanmar, the first of which spans about 9.5 acres of land and comprises the former MR headquarters. The second site covers around 0.5 acres and comprises the FMI centre.

Further, Yoma and Hong Kong and Shanghai Hotels have agreed to extend the long stop date to 30 June 2016, under existing shareholders agreement.

Yoma and site vendor Serge Pun & Associates (Myanmar) also agreed that the remaining payment for the acquisition will not be triggered until the lease for the 0.5-acre site is obtained.