YANGON—The Myanmar Investment Commission (MIC) has approved a joint venture between a Myanmar company and its Japanese partner that will develop the largest shopping mall in Myanmar’s commercial hub, Yangon, according to the Ministry of Investment and Foreign Economic Relations (MIFER).
Last Friday, the MIFER approved two separate investments of US$462.69 million (627.59 billion kyats) and 73.2 billion kyats by the venture. These funds include increases to seven existing investments and seven new investments.
The total approved amount also included a $180-million investment in the joint venture between local real estate developer Shwe Taung Real Estate Co. Ltd. and Japan’s AEON Mall Co. Ltd., which will invest in, develop, manage and operate the large-scale shopping mall in Dagon Seikan Township.
AEON Mall Co. is one of the biggest commercial developers in Japan, focusing on regional shopping mall development. It operates 142 malls in Japan, 21 in China and nine in three ASEAN countries.
Shwe Taung is one of Myanmar’s leading developers, implementing township developments, industrial parks, shopping malls, high-end residences and A-grade offices.
Shwe Taung will hold a 30-percent stake in the joint venture, with the remaining 70 percent held by AEON Mall Co., according to a press release issued by Shwe Taung on Tuesday.
The company said the new AEON Mall, to be located on a 17.632-acre (7.1-hectare) plot, will be the largest mall in the country.
The five-story mall will have about 1.2 million square feet (111,480 square meters) of gross floor space and parking for 2,300 cars.
The mall, which will open in 2023, is expected to create job opportunities for 2,300 people, according to the MIC.
Shwe Taung Co. said in its press release that the mall will introduce new retail concepts to the Myanmar market, including AEON general merchandising stores, Japanese brands, entertainment, pet care and modern lifestyle products and services from the AEON group of companies.
“We are excited to enter into this strategic joint venture with AEON MALL to bring fresher and more [innovative] retail and lifestyle concepts to Myanmar so that our tenants, customers and the community can enjoy new experiences,” said Daw Sandar Htun, CEO of Shwe Taung Real Estate.
AEON MALL managing director Mitsugu Tamai said the joint venture will offer Myanmar consumers new experiences by providing a platform for regional community functions, cutting-edge shopping zones and entertainment spaces.
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