Singapore Myanmar Investco - Retail and F&B venture in Junction City
- Up to 10 Retail and F&B brands to open.
- Junction City is latest integrated development in Yangon.
- Operations to start this month.
Retail and F&B stores to open in Junction City
- Singapore Myanmar Investco (SMI) announced yesterday evening that it will start retail and F&B operations in Junction City, an integrated development in Yangon, Myanmar. With a 5-year lease here, SMI targets to open up to 10 retail brands and F&B concepts, and the following operations are slated to commence this month.
- Level 1 will have seven retail outlets with a total approx. size of 7.2k sq ft, featuring brands like Coach, Aigner, Pandora, Love Moschino, Furla, Versace Versus, Bering. Level 2 will have a large Benetton fashion retail store of ~2k sq ft. The group’s first Shiseido counter will also be opened in Junction City, following the exclusive distribution agreement with Shiseido Asia Pacific that was signed in Feb-17. For the F&B space, the group will open Crystal Jade Kitchen and IPPUDO.
Junction City strategically located near tourist attractions
- Junction City is one of Yangon’s high-end real estate projects, and was recently officially opened. Phase one of Junction City is located at the junction of Bogyoke Aung San Road and Shwedagon Pagoda Road in the city’s central business district.
- The project is close to Yangon’s well-known tourist attractions, including the world-famous landmark, Shwedagon Pagoda.
- The project has a built-up area of ~260k sqm and comprises of Grade-A offices, a 5-star luxury hotel, a retail & entertainment complex with five floors (Phase 1), as well as high-rise Serviced Residences (Phase 2) .
Positive development amid rising consumerism and tourism
- With the addition of this development, we reiterate that SMI offers prime exposure to Myanmar’s fast-growing consumer and tourism sectors.
- In addition, SMI continues to hold a dominant position in airport duty-free retail at Yangon International Airport’s new terminal, and we understand that the duty free business has been growing well since the inception of most stores in early Sep last year.
- Led by a strong management team, coupled with a backdrop of a high-growth economy, we believe SMI is attractively positioned for growth.
- Maintain BUY with fair value estimate of S$0.97, based on a conservative PE ratio of 16x FY19F (ending Mar 2019).