Deal Signed for the City Gate Commercial Complex

• 25 July 2018
• Property Focus
• 5386 Views

The long-awaited deal between Cambodia and China for “The City Gate” mega commercial complex has been officially signed, according to the press release.

The Phnom Penh Autonomous Port (PPAP) announced on 19 July, 2018 that it has leased out nine hectares of its land from Chroy Changvar Bridge to the Night Market along the Tonle Sap River to Chinese real estate developer, Chean Chhoeng Thai Group, a subsidiary of Yuetai Group, for a full amount of US$16.5 million for a period of 50 years. The payment, which includes 10% VAT tax, is valid from June 29, 2018 to June 28, 2068.

The lease agreement is aimed at generating revenue for the government as well as contributing to the development of the city along the river, the press release said.

Under the agreement, Chean Chhoeng Thai Group will turn the area into a mixed commercial complex comprising of an art centre, office building, cultural centre, water park, floating market, playground and public park, Phnom Penh smart centre, technology office, consolidated residential building, modern innovation building, a five-star hotel, and other activities as determined by the Council of Ministers.

In addition to the lease payment, Chean Chhoeng Thai Group promised to build public infrastructure using its own funds such as embankments, pavements, and roads from Chroy Changvar Bridge to the Night Market which will cost the company US$30 million.

Meanwhile, the company will build a new administration building worth US$11 million, and two new multi-purpose terminals worth US$30 million in compensation to Phnom Penh Autonomous Port (PPAP).

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