Yoma

Yoma: entered into a shareholder’s agreement to form a 60/40 JV with Dragages Singapore to construct 1,043 apt units of the Zone B condo devt at Thanlyin Star City in Myanmar. The site is 70% beneficially owned by Yoma. The JV co, BYMA, is 60% held by Dragages and 40% held by Yoma. At a cost of approx US$94m, construction works are targeted to commence by end Apr ’13, and will last for about 33 mths. During the construction period, apt blocks in the zone will be completed and launched progressively to allow occupants to move in as early as possible. This construction project, which is subject to approval by the Myanmar govt, is the second out of five devt phases in the zone, which itself is targeted for project completion in Jan ’16. Dragages is supported by the French-listed Bouygues infrastructure conglomerate. Dragages has over a century of construction expertise in Asia and has completed many landmark projects in the region, including restoration of The Fullerton Hotel, constructin of the Ritz Carlton Millenia Hotel, Centennial Tower, Millenia Office Tower and Millenia Walk retail mall, The Citylights and The Sail@ Marina Bay. Yoma mgt notes this Dragages support will ensure the project’s quick and high quality completion, and that Myanmar will benefit through the transfer of know how. Yoma trades at 2.5x P/B. Trailing P/E is not meaningful at the moment, due to one off admin expenses incurred ytd.