With a five-year lease, the group is targeting to open up and operate up to 10 retail brands and F&B concepts in the retail & entertainment complex of Junction City.
(See: Singapore Myanmar Investco to start retail, F&B operations at Junction City)
“With the addition of this development, we reiterate that SMI offers prime exposure to Myanmar’s fast-growing consumer and tourism sectors,” says OCBC lead analyst Jodie Foo in a report on Friday.
On top of the retail and F&B venture at Junction City, SMI also holds a dominant position in airport duty-free retail at Yangon International Airport’s new terminal.
SMI has inked a 10-year exclusive supply agreement with DFS Group, and has also won a 10-year duty-free retail concession at Yangon International Airport (YIA) for 90% of commercial space at the new terminal.
(See: Can Myanmar’s growth lift this company out of the red?)
According to Foo, SMI’s duty free business has been “growing well”.
“Led by a strong management team, coupled with a backdrop of a high-growth economy, we believe SMI is attractively positioned for growth,” says Foo.
As at 12.51pm, shares of Singapore Myanmar Investco are trading 3 cents higher at 55.5 cents.
