South Korean KDB Daewoo Securities has announced that it will invest nearly US$200 million in construction in Burma’s former capital Rangoon, Korean daily Maeil Business News reported on Monday.
The project, which will include a 14-story luxury hotel and a serviced residential high-rise near Inya Lake, will be carried out by a consortium of Daewoo International, POSCO Engineering & Construction, and Korean luxury chain Lotte Hotels and Resorts, the report said.
The project is estimated to cost US$220 million, about 190 million will be financed by the brokerage, and it is expected to be complete by late 2016.
Maeil reported that the project was commissioned under a “Build-Operate-Transfer” agreement, which offers a 70-year land lease after which the property must be returned to the Burmese government.
Daewoo Securities has long been the largest stock brokerage and investment banking firm in South Korea, with 124 branches worldwide. In the early 2000s it became a subsidiary of KBD Financial group, which in turn was parented by the Korea Development Bank. The Daewoo Corporation was originally, in the 1970s, better known as an industrial conglomerate with interests in auto-making, shipbuilding and steelworks.
As Burma’s economy opens up after decades of isolation, South Korean companies have proven themselves to be serious contenders in many of the country’s emerging industries; industrial zones in Rangoon and Kyaukphyu have both received Korean bids, and representatives of Hyundai Motor Co have said that they hope to open 14 new car dealerships in Burma by the end of next year.
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