Logo of Phnom Penh Post newspaper Phnom Penh Post - Lease signed for plot off port

Lease signed for plot off port

Content image - Phnom Penh Post
A billboard advertisement of Yuetai Group was placed at the outside wall of Phnom Penh Autonomous Port. Heng Chivoan

Lease signed for plot off port

Bourse-listed Phnom Penh Autonomous Port (PPAP) announced on Tuesday that it would lease land along the Tonle Sap River to a Chinese company that plans to develop a commercial complex there.

The lease agreement for 9.25 hectares stretching from the capital’s Chroy Changvar bridge to the Night Market, was signed on June 29 by PPAP and Chean Chhoeng Thai Group, a subsidiary of Yuetai Group.

The move comes after the land was reclassified from state-public to state-private.

In a press statement, PPAP said that included in the agreement are infrastructure development requirements in addition to a $16.5 million rental fee. The lease agreement lasts for 50 years.

Yuetai Group is a Chinese developer that operates various property projects in Cambodia such as East One and East View.

“To generate additional revenue and participate in urban development along the river, the port signed with Chean Chhoeng to lease the land, starting from June 29 this year until June 28, 2068,” its press release said.

Phnom Penh Autonomous Port CEO Hei Bavy could not be reached for comment on Tuesday.

Industry insiders have responded by saying that more development will boost the Kingdom’s real estate sector.

Key Real Estate Co Ltd director Sorn Seap said it is a good thing if the project appears to be sound.

“Constructing high-rise buildings along the riverside could have some drawbacks if the building is designed without first consideration on the space and the environment,” he said.

The lease contract requires Chean Chhoeng Thai Group to construct an embankment from Chroy Changvar bridge to the Night Market at a cost of $19 million, a walkway and path for small vihecle along the embankment at a cost of $11 million, a new PPAP administration building totalling $11 million and two new terminals blocks priced at $30 million.

Structure requirements

The structure is set to include office buildings, a commercial complex, an arts centre, a cultural square, resorts, condos, a five-star hotel, an exhibition centre and a public park.

A real estate expert who refused to be named said that the rent fee was too low and didn’t match the value of the location.

“My heart broke when I heard the news. The land in this location should be $3 per square metre for a month, and in genaral practice, the price will increase by 10 percent every five years,” he said.

As calculated by The Post, that estimate would put the rent fee at $270,000 per month, or $166 million for 50 years.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The