Local and Foreign Investors Form Property Joint

• Proeksa Meas
• 31 December 2015
• Local News
• 1375 Views

Realizing the demand for grade-A office space was outstripping supply, a group of local and foreign investors have a joint-venture called Kingdom Luxury Development Co. The goal is to build a new grade-A tower in Phnom Penh.

Formed in mid-April, the joint-venture signatories are Cambodia Properties Limited (CPL), which has 17 years of local experiences in property trading; TriAsia Group, a Japanese investment company; independent property investor Sor Thida; and architect and interior designer Lorenzo M. Martini, according to the Phnom Penh Post.

The joint venture plans to start construction of a 25-story office tower in early 2015 on Norodom Blvd., which will three years to complete. Covering an area of 78,000 square meters, it will cost an estimated cost US$50 million. The tower will include five floors of parking.

The tower would include amenities such as massage, stream and sauna rooms, a swimming pool and retail outlets. The exact location is unknown.

Cheng Kheng, CPL director and president of the Cambodian Valuers and Estate Agents Association (CVEA), said the joint venture’s mission was ultimately to raise the bar in terms of not just commercial property development but also residential. “Upon completion, investors will have their own office space that they can either use themselves or rent out,” he said

According to Kheng, it is currently a good time to invest in the construction sector in Cambodia due to strong demand for grade-A office space. He added that the number of personal and business investors active in Cambodia continues to rise.

Sor Thida, an independent property developer and signatory of the joint-venture agreement, said the commercial tower slated for construction on Norodom would not be too late to take advantage of ASEAN Economic Integration in 2015, because the majority of current office space was either grade B or C.

“ASEAN economic integration will require at least one or two years, so by the time construction is completed many investors will be flowing into Cambodia,” she said.