De Castle Royal launches leaseback program

De Castle Royal launches leaseback program

Thu, 24 April 2014 Post Staff In a first for Phnom Penh, South Korean condominium developer Nury D&C has teamed up with SBI Royal Securities to offer condominium buyers a leaseback arrangement on the remaining condo-miniums and condo-minium blocks for sale at De Castle Royal. The 32-storey De Castle Royal has a total of 414 condominium units. According to Nury D&C, a total of 90 per cent have been sold so far, with construction slated for completion in the coming months of this year. Senior associate of SBI’s Corporate Finance Division, Leng Vandy, says that the leaseback program will bring positive financial benefits to buyers who take advantage of the arrangement. “The buyer will get a guaranteed return that is relatively higher than most of the alternative property investments in Phnom Penh,” says Vandy. He adds, “In addition, the buyer will not be responsible for payment of management fees and utilities.” An arrangement in which the buyer leases a property back to the seller in return for guaranteed returns, leasebacks are common overseas, but are being pioneered by Nury D&C in Cambodia. Other condominium developers that are currently considering leaseback arrangements are, according to SBI, still too far from completion to act on such plans. The De Castle Royal leaseback program offers a one-year high annual return of 8 per cent, with available investment possibilities ranging from a single condominium unit to blocks of five units. The leaseback arrangement is limited to De Castle Royal’s three-bedroom condominiums. At a block investment of five three-bedroom condominiums for approximately $2 million (or about $400,000 each), the annualised return on a one-year...
Luxury resort looks for new lease of life with redesigned blueprint

Luxury resort looks for new lease of life with redesigned blueprint

Thu, 10 April 2014 Siv Meng A new blueprint for the long-delayed Snake Island (Koh Pos) resort development off the coast of Sihanoukville will soon be completed, and investment of up to $1 billion is hoped to kick-start the project, which has a planned completion date of 2018, according to the developer. Kheam Kolneath, public relations manager of the Koh Pous (Cambodia) Investment Group (KPIG), said recently that the group’s director was overseeing the finalisation of a revised resort blueprint with an architect from US-based Interstate Hotels and Resorts. According to KPIG’s website, the group has entered into a long-term strategic development agreement, with Interstate acting as the island resort’s property manager. Plans to redesign the blueprint for the 116-hectare luxury residential and resort complex come amid poor sales and a host of other setbacks. In 2006, the Cambodian government signed a 99-year lease for the land on Koh Pos – also known as Morakot Island – to Russian KPIG. The Post reported late last year that the company had already invested $100 million on a 1-kilometre bridge to the island, as well as other infrastructure, including an unfinished 5-kilometre road circling the island. An artist’s view of previous plans for the 116-hectare Koh Pos resort. PHOTO SUPPLIED According to Kolneath, the blueprint is not yet complete, with the group director seeking changes to some aspects of the design from Interstate before an official launch and a proposal aimed at gaining permission to initiate the new project from the Council for the Development of Cambodia. KPIG’s director has said that the new plan will increase the project budget from...
Battambang moves to establish first Pub Street

Battambang moves to establish first Pub Street

Thu, 3 April 2014 Siv Meng To attract tourism and make Battambang province more appealing as a nightlife destination, provincial authorities are preparing to follow the way of Siem Reap and lay the groundwork for a Pub Street ahead of the Khmer New Year. The deputy governor of Battambang, Ngon Ratthanak, says the authorities had decided that Battambang’s first Pub Street would be located in Svay Pou commune, on a riverside stretch of Road No.1, and that it’s hoped the move will attract more visitors to the city as well as entice more people to relocate there. The provincial authorities’ first step would be to promote a Pub Street exhibition, which will launch in the second week of this month, he says. The riverside area that Battambang plans to develop into a Pub Street. PISEY HIN “The Pub Street area will be 500 metres long, in the area of the French colonial-era Angkor Hotel in Svay Pou commune,” he says, adding that “after the exhibition, Pub Street will be open permanently”. Battambang city comprises 10 communes and 62 villages, with a total population of about 147 000 people. Provincial governor Chan Sophal says that the provincial authorities are still preparing aspects of the new Pub Street area, including ornamental lighting, among other features. He adds that the area will also include shops and restaurants, and that the owners were cooperating with the authorities in getting everything ready. Battambang, according to the governor, aims to publicise itself as a tourist destination that offers excellent Khmer food and international cuisine, as well as nightlife. “The authorities are focused on the preparations...