Perennial enters joint venture to build Myanmar mixed-use project

Perennial Real Estate Building in Singapore’s Chinatown area; taken September 2018.Perennial Real Estate Building in Singapore’s Chinatown area; taken September 2018.

Perennial Real Estate has entered a 50:50 joint venture with Mandalay Taungthaman Development Ltd. (MTDL) to build a mixed-use project in Mandalay, Myanmar, the Singapore company said in a filing to SGX Tuesday.

“Establishing a presence in Myanmar is in line with Perennial’s strategy to expand into new markets with high growth potential and untapped value. This diversifies Perennial’s investments and adds a new engine of growth to complement its current asset portfolio, which is predominantly in the People’s Republic of China and Singapore,” Perennial said in the filing.

The project, located in Chan Mya Thazi Township, adjacent to Mandalay Convention Centre, is expected to include an innovation center, shopping mall, luxury villa enclave and civic spaces, the filing said.

The joint venture, called Taungthaman Perennial Development Ltd. (TPDL), will be via Perennial’s indirect wholly owned subsidiary Perennial MTP, the filing said.

Under the deal, TPDL will enter a public-private partnership (PPP) with the Mandalay Regional Government (MRG) for the project, the filing said.

“The adoption of the PPP model for this project will provide the joint venture with closer collaboration with MRG, which lowers the development risks of the project,” Perennial said.

Perennial said it would fund the joint venture via external borrowings, internal funds and the sale of the villas and commercial shop houses.

MTDL is an indirect wholly owned subsidiary of Capital Diamond Star Group, a Myanmar-based conglomerate with a presence in real estate, retail and healthcare, the filing said.

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