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

  • Government set to slash holidays

    The private sector has welcomed the government’s move to reduce the number of public holidays in the in the Kingdom – known for having the most public holidays in the world – by seven days. However, the government had just added the “Day of Remembrance” on

  • ‘Kingdom lacks up to 400MW in available electricity’

    Prime Minister Hun Sen has called on the general public, hoteliers and businesspeople with generators to use them as back-up as the Electricity Authority of Cambodia cannot generate enough electricity to meet needs due to low water levels in power station reservoirs. On Saturday evening

  • Kith Theang being held in PJ prison

    Kith Theang, the brother of prominent businessman Kith Meng, was charged by Phnom Penh Municipal Court late on Monday and sent to the capital’s Police Judiciare (PJ) prison over the nearly 50kg of drugs found in a February 23 raid by authorities on the Rock

  • Sor Chandeth defends his criticism of Hun Sen

    Former senator Sor Chandeth has defended his choice of words when criticising Hun Sen, saying he was merely speaking metaphorically to attack the Prime Minister’s political life, not his actual person, as the latter seeks damages. [img] Chandeth spoke to The Post on Thursday,