J&L Property Development Co. Ltd. announced it will invest about $250 million to develop the 32-floor Sky Tree condominium project in Phnom Penh’s Russey Keo district.
Executives at the company, which has about 20 years of local experience, said it had entered a strategic partnership with Chinese construction giant MCC Corporation for the project. The first phase of construction is expected to be completed and ready for handover to unit buyers by 2019, they said.
Affordability and high quality are the goals of the project, said J&L general manager Scott Wu.
“Local and international buyers are only required to pay an initial deposit of 10 percent of the total purchase price,” Mr. Wu said, adding that this would make the units affordable to local buyers. Buyers also have 40 months to pay 20 percent of the cost with no interest, while they can take out 15-year mortgages from banks to pay off the balance, he added.
Urban Architecture Co. Ltd. design department head Melvin Baroga said the design of the Sky Tree was based on a strong desire to create an architectural impression that exemplifies grandeur.
“Pronounced perpendicular lines that extend from the podium up to the roof communicate a feeling of superiority from the surrounding buildings,” he said. “A combination of horizontal and vertical design elements are used to communicate solidity. It creates rectilinear forms that suggest stability and permanence.”
The Singaporean designed building rises 32 floors above Phnom Penh with about 40 percent of the total complex dedicated to shared facilities, such as rooftop gardens, a helipad, medical clinic, sky bar, gym, spa, retail outlets, car parking and offices.
Units start from $89,440 and offer a minimum total rental return of 18 percent over three years, according to marketing executives. Based on land appreciation trends in Russey Keo, J&L predicts the value of the units will rise about 6 percent a year, executives said, adding that this forecast was “conservative.”
Combining rental income with property appreciation should give buyers at least a 50 percent return on investment in the first six years, marketing executives at the company said.