Construction of controversial building Gold Tower 42 has resumed, with developers assuring the government it will be finished by the end of 2019.
For in depth analysis of Cambodian Business, visit Capital Cambodia
Seng Lot, spokesman for the Ministry of Land Management, told Khmer Times that the building is again under construction after the developer was pressured by the authorities to finish the berated project.
“We want the company to finish what they started. We didn’t want this situation to go on any longer,” Mr Lot said, adding that the government has sent a clear signal to other developers warning them against letting their projects sit idle, as this situation can discourage investment in the sector.
The 42-storey building is located in the heart of Phnom Penh, on the intersection of Monivong and Sihanouk boulevards. It is a multi-purpose commercial centre with five floors of underground parking space, three floors of retail space, nine floors of offices and 399 condominium units.
The project, developed by Yon Woo Cambodia, began in 2008 and has already been delayed three times: first in 2009, following the global financial crisis, and again in 2012. Construction resumed in 2013 and then stopped again in March last year. Despite these postponements the tower has reached 31 floors.
Yon Woo Cambodia – the company that owns the building – reached an agreement with Shenzhen Hongtao Decoration and Waiman Construction & Engineering in November last year to complete the project.
Kim Tae Yeon, president and chairman of Yon Woo Cambodia, told reporters after signing the agreement that the company will complete the project by the end of 2019.
“I promise Prime Minister Hun Sen and the Cambodian people that the project will be ready by the end of 2019,” he said.
“We will start selling units once the building is finished. We are confident it will be successful.
“We have already invested $100 million and we will spend another $140 million to finish,” Kim Tae Yeon said.
Dith Channa, CEO of Lucky Realty Co., Ltd, told Khmer Times that resuming the construction of Gold Tower 42 will change the landscape of the city.
“The abandoned project was very bad for the city’s image. I am glad that an agreement has been reached and that the building will be finished,” he said.
“I am certain there will be no lack of investors interested in buying space in the upcoming building. If completed, it will be a success.”