Japanese Developer Launches 3 Projects

• 31 December 2015
• Property Focus
• 2712 Views

Japanese real estate developer Creed Group announced its entry into the Cambodian market with three property developments in Phnom Penh. Implemented over the next three years, the projects will supply over 2,300 residential units worth $248 million.

As part of a joint venture with local firm Triple Gem Assets Co., Ltd, Creed Asia (Cambodia) Co., Ltd, recently launched its first condominium project located in front of Phnom Penh International Airport and behind the Malaysian Lion Mall. The $134 million Bodaiju Residences will feature 928 1-3 bedroom condo units. Construction started in August this year with completion scheduled for December 2017.

The second project, Arata Garden Residences will target middle and higher income Cambodians with 712 shop houses and linked villas situated in a Japanese architectural garden design. Borey Maha Sen Sok, the third project, aims to provide international standard affordable housing with 669 flats.

These two later projects, according to Mr. Heng Punnareay, Creed’s Business Development Manager, will cost a total of $114 million and be located closer to the city, yet still on Phnom Penh’s outskirts.

The Bodaiju Residences project will introduce the concept of living in French and Japanese architecture in a garden setting for the first time in Cambodia.

Bodaiju’s average sale price at $1,600 per square metre is targeting foreign property buyers, especially executives of factories based at the Phnom Penh Special Economic Zone. Arata Garden Residences Borey Maha Sen Sok however will target local buyers with more affordable prices.

Founded in 1996, Creed Group specialises in property development and real estate investment. In Japan, the company successfully launched multiple private funds of $3 billion, $1 billion in public funds and another $1 billion for development. It also listed this $5 billion total fund on the Tokyo Stock Exchange.

The company re-strategised its core business growth in 2012 to focus on Southeast Asia because of the rapidly growing real estate market. in Asia. To date, it has invested a total capital of more than $340 million in Cambodia, Malaysia, Vietnam, Bangladesh and others.

The stable political and economic environment along with the pro-business government, favourable investment laws and incentives, accessible relevant authorities and a young, dynamic population with an average age of 24 are the reasons behind the company’s confidence in the Cambodian market, according to Mr. Toshihiko Muneyoshi, Creed Group’s Founder and Managing Director.

“The most important reason to land on Cambodia is also because Cambodia was the first country for Japan to make Treaty of Amity with after the end of World War II,” he stressed.

“And with ASEAN integration on the way at the end of this year, we believe Cambodia will once again become the pearl of Asia and the destination for investors, especially Japanese due to our diplomatic relationship,” he added.

Creed’s three property developments aren’t its first businesses in Cambodia; the company opened ORO Micro-finance as part of its corporate social responsibility in December 2013 to help farmers access agriculture loans in order to reduce poverty.

H.E. Im Chhun Lim, Minister of Land Management, Urban Planning and Construction, said he believes Creed’s presence in Cambodia, as with many other Japanese companies, has brought abundant benefits to Cambodia’s economy and Cambodians.

“The growth of Japanese private investors reflects the confidence in Cambodia’s open-economic policy, political stability and long term economic growth,” he said, adding that “It reflects the optimism that the economic relations in ASEAN will progress smoothly when ASEAN economic integration happens at the end of this year.”

Welcoming the announcement of the Aeon Mall II in Phnom Penh, the minister also hinted that there will be a 2nd branch of Toyoko Inn to be developed in the capital in the near future.