Central Trust Co Ltd, a joint venture between Cambodian and Chinese investors with a trustee licence in hand, has launched the first real estate trust products in the Kingdom.
Speaking at the inauguration last week in Phnom Penh, CEO Ling Dong announced five series of products – Funan, Zhenla, Angkor, Khmer and Bayon – which he said represent “five different functions of the company”.
He said: “Investment in the real estate market in Cambodia with its persistent display of potential has compelled companies to pick up real estate as their core, fundamental assets.”
A representative of Peak Capital Management Co Ltd, a partner of Central Trust, said at the event: “I strongly hope that all of Central Trust’s products will designed carefully and will be able to make their way around Cambodia, so that they can bring even better trust fund management to its customers.”
Ling also signed a letter of interest on “Funan series real estate single trust” products with two investors.
He said: “The two parties believe that the contract will help improve the security of clients’ corporate funds and share high-growth dividends, as well as bring economic growth and real estate development in Cambodia.”
Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat voiced hope that Central Trust would garner more recognition in the Kingdom and make headway in the development of the trust industry.
He said: “The next step is for the SECC to invite licensed financial institutions in Cambodia to meet [Central Trust] and find out more [about them, so that we may] promote the development of trust fund management that is aligned with standards.”
Signed into law by the King on January 2, 2019, the Law on Trust aims to regulate funds, financing or subordinated debts provided by development partners and support the banking and microfinance sector in Cambodia.
The law divides trusts into four categories – commercial, public, social and individual.