The AEON Mall 3 project development in Phnom Penh is moving closer after Hyundai Engineering announced it has won a $164 million bid to build it. Local real estate developers welcomed the move, saying the news is creating more confidence among other potential investors.
Hyundai officials said on April 19 that Hyundai Engineering won the project from AEON Mall, one of Japan’s largest distribution groups, which operates more than 200 shopping centres around the world, according to Korean news agency, IT Times.
Chrek Soknim, president of Cambodian Valuers and Estate Agents Association (CVEA) told Khmer Times yesterday that the news will help to give impetus to building more projects in the area.
Chrek, who is also the CEO of Century 21 Mekong, said that with the city’s urbanisation, more investment projects are expanding to the outskirts, creating great potential for the future. “To expand the city, we need more infrastructure investment, including roads, commercial buildings and shopping centres,” he said. “The presence of AEON 3 will develop the confidence of more investors to come and push their projects, while those who are already there will enjoy the benefits.”
This project is to build a five-storey shopping centre and parking facilities located on Samdech Hun Sen Boulevard, the so-called 60-Metre Street in Chak Angre Krom commune, Meanchey district. The site is 170,000 square metres (sq m), the largest of the three AEON Malls in Cambodia, all of which are in Phnome Penh. Construction will take about 27 months and the mall is expected to open in 2023. According to Chrek, during the COVID-19 pandemic, the price of real estate has not changed much and transactions stalled. He said that after it is over, property prices will see an increase of 15 to 20 percent. “The land in this area is owned by rich people, so there will be room for big projects in the future. We are already seeing Chip Mong and Peng Hout developments,” he said. “The project will become the main shopping mall for people in the south of the capital.”
The first Aeon at 68,000 sq m was officially opened in 2014. It cost $205 million and is on Sothearos Boulevard, Chamkar Mon district, an area close to Koh Pich Island. The second at 85,000 sq m cost $120 million and was opened officially in 2018 in Sen Sok district, in the northern part of the capital. AEON Mall plans to continue to expand its large shopping mall business in Southeast Asian countries, according to its financial results for the fiscal year that ended in February. The report shows that AEON Mall recorded operating revenue in Asean to the tune of about $123 million, an increase of 18.1 percent year-on-year while operating income amounted to $25 million, up 168.7 percent compared with the previous consolidated fiscal year.