Japanese property firm Leopalace21 Corp will build a serviced apartment complex in Phnom Penh costing $15 million to cater to the growing demand from foreign business executives and short-term travellers in one of Southeast Asia’s fastest-growing economies, according to a report in the Japan Times last week.
Leopalace21 says its 14-storey building called Granferte Phnom Penh, located in the capital’s upscale Tuol Kork district, will feature 56 rooms with floor space ranging from 38- to 133-square metres.
“The serviced apartments, built at a cost of about ¥1.7 billion ($15 million), represent the first overseas self-developed property for the Tokyo-based leasing and construction company. It has previously launched similar operations at existing properties in Thailand and Vietnam,” the report said.
The new apartment complex is about five kilometres from the heart of Phnom Penh and 10km from Phnom Penh International Airport.
Leopalace21 has advanced into Southeast Asia in recent years, joining other Japanese companies tapping into emerging countries in the region to supplement business activity that is lagging at home due to population decline.
Senior Vice-President Tadahiro Miyama said Leopalace21 has entered the Cambodian market as Japanese and other foreign firms are expanding their presence there to take advantage of its rapid economic growth.
In addition to serviced apartments in the three Southeast Asian countries, the Japanese firm provides office rental services with office equipment suitable for foreign startups in Myanmar and the Philippines.
Realtors said more Japanese investors are turning their focus to the property sector, pouring tens of millions of dollars into the construction of apartments and condominiums in Phnom Penh.
Thida Ann, the director of CBRE Cambodia, told Khmer Times recently that Japanese investment in Cambodia was rising in the property development, banking, industry, electronics, fashion and food and beverage sectors.
“In my view Japanese investors are aggressive,” she said, adding that they were drawn here by the stable economic growth in Cambodia.
Ms Thida said Japanese investors also arrive with the right skills, expertise and finance.
“This is why they are successful,” she said, adding that they might be cautious in making decisions, but once they do, they move fast.
Ms Thida said more investors are researching the market here to identify opportunities.
“In general, if one investment or one project is a success, it will lead to many more,” she said, adding that investors are more carefully considering locations, supply, demand and unique selling points for projects.
According to the Council for the Development of Cambodia, Japanese companies are now involved in 115 different projects in the country, which in total are worth $1 billion and have created 36,000 jobs.