A dispute that waged on for years between developer World City and construction firm Hanil Company over the stalled Camko City project has ended after a court ruled to sever a contract between the two parties last month.
The satellite-city project launched in 2007 fell into disarray when the global economic crisis hit in 2008 and construction halted.
Kheng Se, a member of Camko City’s management, told Post Property that a Phnom Penh Municipal Court ruling in his firm’s favour severing their contract with Hanil at the end of June had paved the way for construction to resume.
“We are currently re-preparing for construction by looking for a new company to continue building the seven condos that contain 1,273 units,” he said.
“In fact [seven of] these condos are already built, but only the internal and external decoration is not completed yet.”
World City deputy manager KC Whang said the original project deadline of 2018 had been pushed back “two or three years”.
“Our company’s plan hasn’t changed,” he said.
Kuy Vat, president and CEO of VTrust Group, a partner in the project, said the consortium remained in a good position despite the setbacks because the real estate sector was growing while Camco City was well-positioned in terms of location and infrastructure.
“The important thing in reorganising is to promote and attract clients so confidence in our project can be restored after construction of this project has been delayed since the global economic and financial crisis in 2008,” he said.
Cheng Kheng, president of the CPL Real Estate Company and president of the Cambodian Valuers and Estate Agents Association, said the success of the parts of Camko City that had already been developed suggested when completed, the development had strong prospects.
“We see only that development of the project that is already read has attracted many people to live there because it has a good location, suitable price and the buildings are not separately built but rather the satellite city is prepared based on international standards,” he said.
“To restart construction now is good because Cambodia will be integrated into ASEAN in late 2015 so the real estate market will be useful,” he said, adding that if the project was successful it would boost the whole market.
Construction on the 100-hectare Camko City development in Phnom Penh located in Russey Keo district’s Tuol Sangke commune began in 2007.