Kingsland Ventures, a wholly-owned subsidiary of the ASX-listed Kingsland Global, has reached a joint venture agreement to develop 10,000 square metres of prime real estate in the new CBD of Phnom Penh, according to Australian-based website The Urban Developer’s report released on Monday.
The Phnom Penh City Centre (PPCC) is wholly owned by Shukaku Inc, a private Phnom Penh-based real estate developer headed by Senator Lao Meng Khin of the Cambodia’s People Party.
The agreement with Urban Global, a subsidiary of Shukaku Inc, will provide for the development of a one-stop business centre in Phnom Penh’s city centre.
The project will provide a range of facilities and functions including office towers, restaurants, banking services, medical centres, a hotel and a convention centre.
PPCC’s 111.6-hectare development was conceptualised to transform Phnom Penh’s city landscape into a modern, sustainable commercial hub with facilities purpose-built for both local and overseas businesses and investors.
By 2025, the new PPCC district will be home to more than 56,000 residents and more than 190,000 daily visitors.
An IT and media hub will also be developed to serve as a connecting point for businesses to enjoy enhanced communication while harnessing opportunities and improving productivity.
The mixed-used development will offer office space in the prime location of central Phnom Penh, a productive community of stakeholders through its cross-selling of amenities and services, enable tenants and visiting clients to enjoy the added benefit of having multiple essential amenities and provide alternative meeting venues for office tenants and their clients, while at the same time ensuring patronage for businesses.
Through the creation of new facilities and spaces, the development will create opportunities for the growth of commerce, culture, arts and sports in the Phnom Penh City Centre.
Under the terms of the joint venture, Urban Global will procure the land title for the project and obtain all necessary licences and permits. Kingsland Ventures will have primary responsibility for the management and will procure the required capital to fund the project of approximately $71 million in tranches over a six-year period.
It is envisaged that Kingsland Venture will procure initial funding by way of issue of redeemable preference shares in Kingsland Ventures, the terms of which are to be determined, and subsequently through pre-sales.
Following the provision of the capital requirements to develop the project, Kingsland Ventures will have a 49 percent ownership stake, while Urban Global will hold the remaining 51 percent.