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7 Things Investors Should Know About Yoma Strategic Holdings Ltd’s Real Estate Business

Yoma Strategic Holdings Ltd (SGX: Z59) is a conglomerate that focuses on Myanmar. It has business interests in a wide variety of sectors in the country, such as real estate development, agriculture, tourism, vehicle distribution, and food and beverage retail.

Given the complexity of Yoma Strategic’s business, I think it will be useful for investors to have a quick overview of the company’s businesses separately. In an earlier article, I had gone through the Consumer segment. In this article, I will share seven points about the Real Estate segment that will help investors better understand what’s going on there [Editor’s note: Articles on Yoma Strategic’s Automotive & Heavy Equipment and Other Investments segments have been published. They can be found here and here.]::

1. In Yoma Strategic’s fiscal year ended 31 March 2017 (FY2017), it generated revenue of S$124.2 million, of which 53.4% came from the Real Estate segment.

2. The Real Estate segment is made up of two parts, namely, Sales of Residences and Land Development Rights (37.4% of Yoma Strategic’s total revenue in FY2017), and Real Estate Rental and Services (16.0% of the company’s total revenue in FY2017).

3. Under the Sales of Residences and Land Development Rights business, Yoma Strategic focuses on large-scale developments, such as StarCity, Pun Hlaing Estate, Yoma Central, and The Peninsula Yangon.

4. StarCity is a development located between the city centre of Yangon and the Thilawa Special Economic Zone. The 135-acre community estate targets the middle-to-upper income segment and is being developed in phases. Upon completion, it is expected to feature 10,000 homes and 1.7 million square feet of commercial space.

5. Pun Hlaing Estate is a 652-acre development of luxury homes that is set on a peninsula between the Hlaing and Pun Hlaing Rivers. As of 31 March 2017, over 400 properties in the Pun Hlaing Estate have been sold; the estate is currently into its next phase of development.

6. Yoma Central and The Peninsula Yangon is a US$700 million project that is situated on a 10-acre downtown site at the heart of Yangon’s central business district with about 2.44 million square feet of gross floor area. The US$700 million investment sum has been approved by the Myanmar Investment Commission.

7. Income from the Real Estate Rental and Services business is mainly derived from investment properties owned by Yoma Strategic, namely Star Residence at StarCity,  The Residence at Pun Hlaing, Dulwich College Yangon, commercial units at StarCity, and Dalian Shopping Mall. There is also a construction business and estate management services (which provides services such as customer service, utility and IT operations, landscaping, housekeeping, security, repair, and maintenance).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.