HLH to Jointly Develop US$50-million Mixed-Use Project in Sihanoukville

• 2 November 2021
• Property Focus
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HLH Group’s subsidiary HLH Development (HLHD) and Smart Winner have agreed to co-develop a mixed-use project on approximately 11.5 hectares of land in Sihanoukville, according to the group’s bourse filing on Monday 1 November.

Located close to Sihanoukville Autonomous Port, about 3 to 5 hectares of the site will be developed into a wholesale and distribution centre that includes a seafood market. The rest will be subdivided into smaller plots for mixed-use development, which the firm will either lease or sell to a potential operator.

Under the terms of the joint venture (JV), Smart Winner will contribute the site, which is valued at US$25.2 million, or 50.4% of JV’s stake. Meanwhile, HLHD will invest US$10 million for the remaining 49.6% and contribute US$5 million towards its working capital.

HLH Cambodia Public Relation Manager Kuoch Lengkheang told Construction & Property Magazine on Tuesday that the additional US$8 to US$10 million will be used for the construction; thus, the whole project would cost approximately US$50 million.

He added the construction is expected to begin by Q2 of 2022, while the completion date is scheduled for late 2023.

This project marks the HLH’s fourth mixed-use development project in Cambodia or the second in Sihanoukville after Project D’Seaview.

Ong Jia Jing, group executive director of Hong Lai Huat, said the latest JV investment is expected to drive further upside for the group in the near future.

“Not only do we gain a recurring source of rental income from the development, but we are also likely to benefit from the development of the mixed-use project or potential sale of the remaining strata title plots,” said Ong.

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