Logo of Phnom Penh Post newspaper Phnom Penh Post - Developers ink master plan for central business district

Developers ink master plan for central business district

Developers ink master plan for central business district

Australian-listed property developer Kingsland Global Ltd has entered into a master cooperation agreement with a subsidiary of local developer Shukaku Inc to develop 10,000 square metres of prime real estate in Phnom Penh’s “central business district”, it announced Friday in a filing to the ASX.

The agreement provides the staging ground for a joint venture partnership between Kingsland – the parent company of Kingsland Cambodia – and Shukaku subsidiary Urban Global Co Ltd that would build a mixed-use development that includes a hotel, apartments, retail outlets and office space, it said.

Under its terms, Kingsland has five months to produce a plan that will outline the development schedule, phasing, costs of each phase, as well as an architectural design and capital expenditure of the proposed project. Providing both companies come to an agreement, Kingsland would then oversee development.

Upon execution of the agreement, a joint venture partnership would begin within 12 months, the announcement stated, with Shukaku holding the majority share at 51 per cent and Kingsland holding 49 per cent.

“The development of such a prime area in the [central business district] of Phnom Penh will be a milestone achievement for Kingsland.

Our master plan will outline a world class development that we expect will become an iconic landmark for the people of Phnom Penh and the citizens of Cambodia,” Kingsland’s managing director, Jeremiah Lee, stated in the release.

Neither Shukaku nor Kingsland Global was available for comment yesterday.While details of where the development would be constructed were not released, Shukaku has long been embroiled with the controversial Boeung Kak Lake site, where its chairman, ruling Cambodian People’s Party Senator Lao Meng Khin, was awarded a 99-year lease on more than 100 hectares in 2007.

The developer has announced plans to build Phnom Penh City Centre on the site, an “eco-city” set to include hotels, housing, a central business district and more.

The project has come under fire from conservationists for filling in Boeung Kak Lake with sand and from rights groups for its mass land evictions, turning some 20,000 people away from their homes.

Shukaku has struggled in attempts to bring in outside investors. In 2014, Singaporean developer HLH pulled out of $14.9 million deal to purchase 1.3 hectares at the Boeung Kak Lake site.

“If this agreement is for Boeung Kak Lake, this is not good news,” said Eang Vuthy of Equitable Cambodia, a human rights group that has defended local evictees.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Aeon, Micromax partner again for third mall

    AEON Mall (Cambodia) Co Ltd and a locally-owned Micromax Co Ltd have entered into a partnership agreement to develop fibre optic infrastructure for $200 million Aeon Mall 3, which is expected to be opened in 2023. The agreement was signed on June 20 between Masayuki Tsuboya, managing director of