Friday, April 3, 2015

Rowsley calls off mega development project in Myanmar

SINGAPORE (April 3): Rowsley, Singapore billionnaire Peter Lim's listed property group, has called off plans to invest US$275 million ($374 million) in a mega mixed development in Myanmar.

Under a proposed agreement with Hoang Anh Gia Lai Joint Stock Co (HAGL) announced in February, Rowsley would take a 50% stake in a firm that owns HAGL Myanmar Centre, a US$550-million project in Yangon being developed by HAGL.

The proposed joint venture will no longer proceed as both sides could not agree on the details of the investment structure, Rowsley said in a regulatory filing today.

"The company will not enter into the proposed joint venture as the conditions precedent under the heads of terms agreement have not been satisfied," it said, adding that it will continue to explore other investment and development opportunities.

Spread over more than 73,000 sq m of land, HAGL Myanmar Centre will comprise four office blocks, a five-star hotel, a mall, serviced apartments and residential units.

The property, which will have a gross floor area of 640,000 sq m, will open in phases from end-2015.
Rowsley, an architecture and property development firm, has been raising funds and going on road shows to prepare for its foray into Myanmar.

Last week, it issued $100-million, 6.5% three-year notes, marking its first stab at raising funds from bond investors since its transformation from an investment holding firm with no operating assets into a real estate company.

The paper is part of a $500-million multi-currency medium-term note programme set up last November.