Yoma to splurge US$11.8m in latest Myanmar venture

To be funded by internal cash flow, debt.

According to DBS, Yoma has entered into a conditional agreement to acquire 80% stake in a plot of land in Pun Hlaing Golf Estate from Pun Hlaing Lodge (PHL) for US$2.4m.

DBS noted that All in, Yoma's share in this venture would cost US$11.8m, to be funded by internal cash flow and debt.

Here's more from DBS:

Yoma has entered into a conditional agreement to acquire 80% stake in a plot of land in Pun Hlaing Golf Estate from Pun Hlaing Lodge (PHL) for US$2.4m.

The land is designated for the construction of a hotel on 8,887 m2 site and has a remaining lease of 45 years. The plan is to build a 46-room international standard hotel with conference and banquet facilities.

Under the agreement, Yoma's wholly-owned subsidiary Yoma Development Group will take 80% stake in a Myanmar-registered JV company, with PHL as its partner. The JV company will hold the rights to the land and be responsible for the construction of the hotel, to be funded by equity and debt. For its share, Yoma is expected to contribute up to US$9.4m to fund the construction.

Separately, PHL will procure the rights to another plot of land in the vicinity with an area of 221.5 m2, which will be injected into the JV company at no additional consideration.

The plan is to develop this plot of land into a fitness and leisure centre for use by hotel guests and residents of Pun Hlaing Golf Estate. The target market for this hotel would be golfers at the estate and participants/visitors of international tournaments to be held there in future.