KUALA LUMPUR: Berjaya Land Bhd (BLand) has raised the gross development value (GDV) of its real-estate project in Myanmar's largest city after a subsidiary secured the concession agreement (CA) with the government to start the project.
The RM3bil housing and mixed development project in Yangon will be developed by its 80% owned subsidiary BDS Smart City Co Ltd over nine years, the company said in a filing with Bursa Malaysia today.
In September last year, BLand had announced that the company was awarded the project by the Yangon region government. It said the preliminary GDV of the project was US$624mil (RM2.63bil).
On Friday, BLand said BDS has entered into the concession agreement with the government of Yangon to formalise a collaboration to undertake the project.
The project, to be developed over 12 parcels of land totalling 183 acres, was estimated to have a gross development value of US$746mil (RM3.05bil).
BLand estimated the total development cost of the project at US$614.9mil (RM2.52bil).
"The estimated profit before tax is about US$131.16mil (RM536.4mil) to be recognised over the duration of the development," it said.
Pursuant to the CA, BDS will own the exclusive rights over the land for 50 years and further extendable for two consecutive terms of 10 years each.
"BDS proposed to undertake a public housing and mixed development project on the land,' it said.
This includes plans for affordable housing, medium costs apartments, high end condominiums, commercial units comprising shoplots, shophouses and the farmer’s market, as well as institutional facilities such as hospitals, schools and community centre to be built over three phases.