Cambodia construction approvals double in first quarter [... over how many FORCED EVICTIONS?]

Phnom Penh's Diamond Island development recently had a new phase approved.

Residents protesting forced evictions in Cambodia ... to make way for Hun Xen's cronies'  development

May 03, 2011
Property-report.com

Construction projects approved by the Cambodia government more than doubled in the first quarter of 2011 compared to the same period last year, according to figures from the Ministry of Land Management, Urban Planning, and Construction.

Projects worth US$324 million were greenlit in the first three months of the year, The Phnom Penh Post reported, compared to US$159 of projects in Q1 2010.

The increase in approvales was due to the ministry’s efforts to make the property industry run smoother, Department of Construction Director Lao Tip Seiha said. “In three months of this year, we saw an increase in construction investors coming to ask for licenses,” he said, adding the same period last year had been “so quiet”.

Phnom Penh hits the heights

February 18, 2008
Achara Deboonme
The Nation (Thailand)

In the market for a million-dollar penthouse suite? Thinking Kuala Lumpur, Bangkok or Singapore? Try Phnom Penh.

South Korean-funded Yon Woo Cambodia announced in January the plan to offer Gold Tower 42, skyscraper apartments from about US$500,000 (Bt16.7 billion) to $1.6 million, and the development - scheduled for final completion in 2011 - will become the tallest in the city.

The Cambodian capital's rocketing real-estate prices have encouraged construction to reach for the skies, government spokesman Khieu Kanharith told Deutsche Presse-Agentur.

"Five years ago another company began planning a 32-storey tower, which has yet to be built, on the outskirts of the capital, and we expect many more such projects," Kanharith said.

David Simister, chairman of property consultant CB Richard Ellis Thailand, agreed. He said that post-crisis Phnom Penh was now as attractive a property development destination as Ho Chi Minh City.

"Rules are quite clear on the back of a strong government. Between Thailand and Vietnam, Cambodia is quite liberal," Simister explained.

A condominium in Phnom Penh now sells for $2,000 per square metre, approximately the same as the Bt75,000 which is quoted for condominiums along Sukhumvit Road. According to Simister, demand is also strong as Cambodians are repatriating overseas earnings while the number of foreign businessmen in the city is growing.

The property market there is set to expand further with the growing tourism industry, following the expansion of the airport and the marketing of new tourist destinations.

Simister said that due to contacts for consulting and marketing services for properties in Phnom Penh his company would later this year open an office there, in the wake of others in Danang and Ho Chi Minh City.

He noted that foreign investors were now looking to do business in the city, thanks to the relaxed market requirements. Phnom Penh's maximum lease for foreigners is 99 years, against a maximum 70 years in Vietnam and 30 years in Thailand. "In Thailand, the ownership issue is not helpful for foreigners. Hopefully the new government will look into that," he said.

Kim Tae Gon, general manager of Yon Woo Cambodia, told DPA: "The investment climate is good. Cambodia is eager for development. We have sold 40 per cent of our apartments in Gold Tower 42 off the plan already, and the majority of buyers are Cambodians, although Koreans, Chinese and British have also bought," he said.

Cambodia's building industry is booming on the back of double-digit growth and hopes that revenue - and businesses - will begin rolling in on the back of the expected oil and mineral revenues due to be tapped within the next two to five years. A stock market is also in the offing within a year.

JSM Indochina makes first investment in Phnom Penh retail centre

Thu, 09 Aug 2007
Property Funds World

JSM Indochina, an AIM-listed company focused on retail and residential investment and development in Vietnam and Cambodia, has completed its first investment as part of the initial portfolio detailed in the company's admission document published on June 22.

Embassy Center is to be an anchored-retail shopping centre featuring 30,515 square metres of retail space along with 100 high-rise serviced apartments in Phnom Penh, with apartment sizes ranging from one to three bedrooms. The property is situated near Central Market, the US Embassy, Wat Phnom, the Governor's House, Le Royal Hotel and the developing financial district. Embassy Center is a few kilometres from Pochentong International Airport.

JSM Indochina estimates that the overall total investment commitment relating to Embassy Center will be approximately USD42m over several years, inclusive of land acquisition, construction and development costs. It is expected that the first phase of the development will be completed and initial rents will commence by 2010.

The Embassy Center was acquired by JSM Indochina chief executive Craig D. Jones in two phases in 2006 for USD13.1m. As set out in the admission document, his consideration for transferring the property to the company will be in new ordinary shares subject to a lock-in for 12 months from the date of admission. On May 30, CB Richard Ellis assessed the unimproved value of the land relating to Embassy Center at USD14.1m.

'We are delighted to have concluded our first investment following the AIM listing in July,' Jones says. 'JSM Indochina gives investors access to one of South East Asia's fastest-growing economies and developing property market. We believe that Vietnamese and Cambodian real estate fundamentals now offer extremely attractive opportunities for investors.'

JSM Indochina was established to investing in Vietnamese and Cambodian real estate, focusing on the development and management of high specification retail and serviced apartment assets in leading cities. The company, which raised USD220m when it listed on AIM on the London Stock Exchange on July 2, aims to provide shareholders with attractive total shareholder returns over the mid- to long term. The manager is JSM Capital Indochina.

Korean group to build US$2b Cambodia city

Thursday, May 31, 2007
Reuters, Bloomberg

A group of South Korean companies said it would spend US$2 billion (HK$15.6 billion) on building a new city in Cambodia, the biggest single investment in the impoverished country still recovering from decades of war.

The residential, commercial, cultural and business complex would be built on 119 hectares on the northern edge of Phnom Penh, the group said Wednesday.

The group, which includes Busan Mutual Savings Bank and property development company Landmark Worldwide, had been wary of Cambodia because of the country's violent recent history, marketing director Lee Yunyoung said.

"But actually when we came here we realized that it is really safe," he said at the ground-breaking ceremony.

"So we want to start our project before others start."

Deputy Prime Minister Sok An said the project would help attract more investors.

"Our population continues to increase sharply, so we need to expand our old city to meet the needs of the people," he said. "Foreign investors also need good infrastructure to run their businesses."

Cambodia's growth has been remarkably high in recent years. Its economy grew 10.4 percent last year, when foreign direct investment hit a record US$4 billion.

In another development, Samsung Engineering, South Korea's biggest engineering company, signed a preliminary agreement to build an ammonia plant in Saudi Arabia for US$946 million, the company's largest single contract.

The factory is for Saudi Arabian Mining and will be completed by December 2010, Samsung Engineering said. The company now expects to exceed a previous target for US$3.5 billion in orders this year.

Samsung Engineering and South Korea's other contractors are more than half way to matching a record set in 1981 for orders from the Middle East. Saudi Arabia has awarded the most contracts.

"It will only get better as a number of major projects are expected to be awarded this year in the Middle East," said Byun Sung Jin, an analyst at Mirae Asset Securities in Seoul.

"This contract will put Samsung Engineering in a better position to win some of those orders."

Saudi Arabia - the world's largest oil producer - is the biggest single source of overseas revenue for South Korean contractors, who have received US$58.1 billion in orders in the 34 years they have been doing business in the Arab kingdom, according to the International Contractors Association of Korea.

Shares of Samsung Engineering gained 7.6 percent to a record close of 85,000 won (HK$714) in Seoul. The stock has almost doubled this year, compared with a 16 percent climb in South Korea's KOSPI index.

Saudi Arabia is expected to invest about US$76 billion until 2010 for refineries and other chemical plants, according to Samsung Engineering. The ammonia plant will have the capacity to produce 3,300 tonnes of the chemical a day, making it the largest in the country.

South Korean contractors have received a combined US$7.45 billion in new orders from the Middle East this year, with almost half of that coming from the United Arab Emirates, the contractors' association said.

South Korean group to build $2 billion city in Cambodia in spite of land-grabbing, land-eviction, land-confiscation

31-May-07
Group to build US$2b city in Cambodia

The Brunei Times

PHNOM PENH: A group of South Korean companies said yesterday it would spend US$2 billion on building a new city in Cambodia, the biggest single investment in the impoverished country still recovering from decades of war. The residential, commercial, cultural and business complex would be built on 119 hectares on the northern edge of Phnom Penh, the group said in a statement. The group, which includes Busan Mutual Savings Bank and property development company Landmark Worldwide Co, had been wary of Cambodia because of the country's violent recent history, marketing director Lee Yunyoung said. "But actually when we came here we realised that it is really safe," he told reporters at the ground-breaking ceremony. "So we want to start our project before others start."

Malaysian real estate development in Cambodia: Suncity's Sunway Tuol Kok City project

A bungalow in SunCity's Sunway Toul Kok City project in Phnom Penh, Cambodia

Monday May 28, 2007
Chasing the global dream

Stories by ANGIE NG and ELAINE ANG
The Star (Malaysia)

MALAYSIAN developers are a creative and adventurous lot and have many signature real estate projects dotting many parts of the world today.

Malaysian-built and owned property landmarks can be found in a growing number of cities as developers continue to take their expertise beyond the local shores.

There is quite an impressive number of landmarks across the globe, including hotels, commercial, retail, and residential properties, and recreational facilities.

IGB has a stable of hotel properties in various cities, including St Giles Hotel in London and Heathrow, MiCasa All-Suite Hotel in Yangon, New World Hotel in Ho Chi Minh City, and St Giles Manila.

IOI Corp Bhd, in a joint venture with Andhra Pradesh State Trading Corp, has completed a gems and jewellery complex in Banjara Hills, Hyderabad.

Next on its plate will be a high-end condominium project in Sentosa Cove.

Undertaken by IOI Land Singapore Pte Ltd, a 70% subsidiary of IOI Properties Bhd, the project will be a joint venture with Ho Bee Investment Ltd.

IJM Properties has some residential developments in India, including Raintree Park in Hyderabad, Andra Pradesh.

Mulpha International Bhd's development projects in Sanctuary Cove, Queensland, and Norwest Business Park, Sydney, have made the company one of the largest Malaysia-based real estate investors and developers in Australia.

Also targeting the overseas markets are Sunway City Bhd (SunCity), Ireka Corp Bhd and Gamuda Land Sdn Bhd.

Having transformed an old tin mining land into the vibrant address that is Bandar Sunway, SunCity now wants to put its creativity and expertise to undertake more projects that are different and unique.

“There is an apparent undersupply of well-designed properties in some of the high-growth cities in the region and we want to come out with good projects that add value to the property landscape there,” SunCity senior managing director Datuk C.K. Wong said.

It is building a landmark housing development in Phnom Penh, Cambodia: the Sunway Toul Kok City project.

The niche project comprises 84 double-storey bungalows within an exclusive residential enclave that introduces a new lifestyle of high-end homes with a host of facilities within a gated and guarded surrounding.

At the launch recently, all the units were sold out.

The 32-acre project has an estimated gross development value of US$33mil.

The project's third phase on the remaining 15 acres will comprise 84 units of 3-storey link house and 48 double-storey villas.

In India, SunCity’s project Sunway Prajay Megapolis is in Hyderabad, an emerging IT and biotechnology hub.

The 400 units of upmarket residential high-rise development on 5 acres have a gross development value of RM300mil.

“We regard this project as our maiden entry into the booming real estate market in India and are looking forward to securing other projects in the rapidly growing market,” Wong said.

Ireka Corp Bhd is currently busy building up the property portfolio for Aseana Properties Ltd (ASPL) in Vietnam, a US$275mil property development company listed on the London Stock Exchange and which is managed by Ireka's fully owned subsidiary Ireka Development Sdn Bhd (IDM).

Ireka has a 20% stake in ASPL, which focuses on property development in Malaysia and Vietnam.

Executive director Lai Voon Hon said IDM was currently working on several projects in Ho Chi Minh City and Hanoi, comprising Grade A offices, 5-star hotels and mid- to high-end condominiums.

“We hope to develop our highly successful i-Zen brand of high-end condominiums and offices for ASPL in Vietnam, and we expect to receive very positive response from both its increasingly affluent local and returning overseas Vietnamese (Viet kieu as they are called in Vietnam),” Lai said.

Ireka will also tap on its expertise in developing successful hotels such as the Westin KL to develop award-winning 5-star hotels for ASPL in Ho Chi Minh and Hanoi to meet the huge demands for rooms in both these cities.

Gamuda Land Sdn Bhd, the property development arm of Gamuda Bhd, expects to make its foray into Vietnam next year when it launches its first mixed development housing and commercial project in Hanoi.

The company, in a joint venture with a Hanoi state-owned enterprise, is finalising a plan to develop a US$1bil township.