Developer Keppel Land is building on its presence in Myanmar.

The Singapore-listed property firm, which is the real estate arm of conglomerate Keppel Corp, entered a conditional agreement with Myanmar conglomerate Shwe Taung Group yesterday to develop premium serviced residences and offices in the second phase of Junction City.

Keppel Land holds 40 per cent of the serviced residences and offices component, with a total investment of US$48.6 million (S$65.4 million). The serviced residences, which will house the first Sedona Suites comprising about 260 serviced apartments, and the offices will make up about 50,000 square metres.

"We are confident of the long-term potential of Myanmar, and are committed to participating in and contributing to the growth of the country," said Mr Ng Ooi Hooi, president of regional investments at Keppel Land.

"Yangon continues to attract increasing foreign direct investments and multinational companies, and we believe that our developments will meet the needs for quality accommodation and business spaces."

Junction City is a mixed-use development in Yangon's central business district. It comprises offices, the Pan Pacific Hotel, a retail and entertainment centre and serviced residences. It will also house downtown Yangon's largest carpark facility, with more than 1,500 parking spaces when completed.

Construction of the second phase of Junction City is expected to begin in 2018.

This will be the second time the two companies have collaborated. They developed Junction City Tower, a 23-storey office building in the first phase of Junction City.

The Grade A office building is expected to be completed early next year, and will have a leasable area of about 33,400 sq m of prime office space.

Keppel Land made its first foray into Myanmar in 1993, when it broke ground for Sedona Hotel Yangon. It also owns and manages the Sedona Hotel Mandalay.