A mixed-use centre invested by Thai Boon Roong – the company spearheading the Twin Trade Center, potentially the tallest building in Southeast Asia when built – and a Chinese company, located along the Russian Federation Boulevard, is scheduled to open for business at the end of this year.
The development, called Star City, is located in Sangkat Teuk Thla, Khan Sen Sok, Phnom Penh.
Tous Saphoeun, deputy secretary general of Board of Architects Cambodia (BAC), who is involved in the project, said commercial operations of the residential and commercial building would not start until the end of 2017.
Sprawled over 867 square metres, the development comprises seven buildings, each 12 storeys high. According to Saphoeun, the mixed-use development will include luxury offices, residences, restaurants and retail spaces.
“Before we decided to start with the construction, we did a thorough study about the location, and we found that the area does not offer luxury offices, and is in an area badly in need of a considerable amount of housing,” he added.
Saphoeun would not disclose the investment capital or other companies involved in the development of the building with Thai Boon Roong, only stating that the figure was in the ranks of a few ‘millions of dollars’ and the project was a grade A office project.
Saphoeun explained that the leasing, renting and selling of the project had yet to be initiated because the companies involved were still closely observing the office market conditions for the year before commercially releasing the project.
Peng Sari, CEO of Cambodia Angkor Real Estate, told Post Property, the office market in Cambodia remains limited standard-wise, since many buildings are plagued with the problem of limited parking spaces.
Sari believes that if the latest grade A mixed-use building in Phnom Penh has substantial parking space in addition to being in a prime location, the project will successfully grab a small portion of the market.
“A project with sufficient investment capital to complete their construction need not worry about their prospects in the market.
“On the other hand, a project that relies on sales in order to use that money in construction will face a challenging obstacle,” Sari said, cautioning that investors should be careful of not having sufficient capital.
Kim Heang, president of Cambodian Valuers and Estate Agents Association, said Star City was located in an ideal area that sees many commuters travel along the main road.
He also noted that the entire development seemed slated for success due to the parent company possessing adequate funds that will ensure the complete follow-through of the development.
“Cambodia needs these kind of investors – an investor with enough funds that will guarantee a finished product, rather than an investor that heavily relies on money from buyers. I am confident that this project will undoubtedly succeed.”
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