A substantial real estate deal transacted last month in Phnom Penh. After Hong Kong Land entered the Cambodian real estate market in April this year, this deal brings the Japanese shopping mall developer Aeon Mall Co Ltd into Phnom Penh. The real estate deal is for 6.7 hectares of land next to the recently opened Sofitel Phokeethra hotel (between Sothearos Boulevard and the Tonle Bassac). The land was purchased from South Korea’s, GS Engineering & Construction approximately a month ago with the help of a Cambodian investor. The exact details of the deal have not been disclosed but according to the Cambodia Valuers and Estate Agents Association the land is valued at circa US$1,500/sq.m. At that price the deal could potentially be worth US$100 million.
Commenting on the news that a large Japanese investor has entered the Cambodian property market, Daniel Parkes, Country Manager of CBRE Cambodia said:
“I think it is great news that there is a large Japanese retailer investing in Cambodia. Previously we have seen Malaysian and Vietnamese investors and now we are seeing investors from Japan and Hong Kong, which are premium developers entering the market.”
In April Hong Kong Land, a subsidiary of the investment giant Jardine Matheson, paid US$33.65 million for a 1,625 sq.m plot between Wat Ounalom and the Tonle Sap river, a 10,500 sq.m site directly behind the US embassy and two serviced apartment buildings near Monivong Boulevard called Colonial Mansion I and Colonial Mansion II.
Savvy premium investors are increasingly investing in the Cambodian real estate market from developed economies and by companies that bring with them excellent track records.