Chinese Developer Signs $1.5 Billion MoU with Royal Group

Sok Chan / Khmer Times No Comments Share:
Royal Group vice chairman and managing director Kith Thieng (L) and Herun Group chairman Yu Songbo sign a $1.5 billion MoU yesterday. Supplied

Cambodian conglomerate Royal Group yesterday signed a $1.5 billion memorandum of understanding with Chinese conglomerate Herun Group to establish a real estate development company in Cambodia, invest in other sectors, and possibly list units of Royal Group on stock exchanges in China, executives from the two conglomerates said. 

Herun is looking primarily at opportunities in real-estate development and the vast inventory of properties owned by Royal Group, it said in a press release. 

Kith Thieng, vice chairman and managing director of Royal Group, welcomed the tie up with the Chinese investment company and the move to form a joint venture real-estate development company. 

“Their company is one of the biggest in China and the Chinese government strongly supports them,” Mr. Thieng said, adding that Herun is entering Cambodia at the right time. 

“Their company also aims to cooperate with Royal Group on construction, logistics and agriculture, especially oil exploration,” he added. 

Yu Songbo, chairman of Herun Group, praised the investment environment in Cambodia. “The reason that the company chose to partner with Cambodia is the country has a good friendship with China and is at the center of Silk Road “One Belt One Road” [strategy],” he said. 

It is partnering with the Royal Group because Royal Group has a good corporate structure as well as leadership,” Mr. Songbo said.

Cooperation between the two conglomerates will eventually span many sectors, from construction and agriculture to logistics, but will begin with construction, he said.  

“More business discussions will bolster investment and bring in much needed investment into Cambodia,” Mr. Songbo said. “Cambodia is fast emerging as an alternative investment destination for China,” the press release said. 

This is due to the Kingdom’s political stability, rapidly growing economy and young workforce, it said.  

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