PROPERTY firm CB Richard Ellis (CBRE) has been appointed by The Royal Group of Cambodia as its exclusive adviser and sole agent to secure investors for developing the island of Koh Rong.

The diversified Royal Group is headed by Neak Oknha Kith Meng, one of Cambodia’s most prominent tycoons.

CBRE said in a press statement yesterday that the group has been granted a 99-year lease by the Cambodian government to develop Koh Rong, the largest private island in the region.

The Koh Rong archipelago, about half- an-hour by boat from Cambodia’s main coastal town of Sihanoukville, is being marketed as the ‘next Asian Riviera’ along the lines of Phuket, Ko Samui and Bali.

Koh Rong island covers 78 square kilometres, about a third of the size of Thailand’s Ko Samui. The local population totals 1,382 people from 317 families, most of whom live in small fishing villages. The island has 28 white-sand beaches stretching up to 6 km and crystal-clear water comparable to the Maldives. CBRE said development opportunities are now opening up with a new international airport at nearby Sihanoukville currently welcoming chartered flights and private jets.

An environmental impact study is already underway for the development of Koh Rong as ‘Asia’s first environmentally planned island’. A team of international consultants, including Scott Wilson Engineers, will oversee the environmental aspects, while MAP Architects Hong Kong has been engaged to draw up a master plan, which will be rolled out over the next three months.

‘The main focus is on developers with plans for exclusive, environmentally-sensitive tourism projects,’ said David Simister, chairman of CBRE Thailand and Cambodia.

Two or three golf courses can be accommodated on the island, and new projects include plans for organic farming and waste management, as well as improved education, jobs and medical care for the local population.

Source: Business Times, 13 Feb 2010

THE Cambodian government has approved a draft law allowing foreign ownership of buildings such as apartments and office buildings to boost economic growth, the country’s Cabinet says.

The draft law approved yesterday in a meeting chaired by Prime Minister Hun Sen is aimed at ‘attracting investors, facilitating the growth of the real estate market, and promoting development’, a Cabinet statement said.

But Information Minister and government spokesman Khieu Kanharith said foreigners will be permitted to own only buildings and apartments, not the land beneath them. ‘We will allow foreigners to have ownership of buildings from the first floor up,’ he told AFP.

The move comes after the private sector in recent years urged the government to allow foreign ownership of properties such as apartments or factories, saying a liberalised real estate market would spur the economy.

Under the current rules, foreign property investments can be made only through the name of a Cambodian national, and many are unwilling to risk losing their assets to potentially unscrupulous local partners.

The cash-strapped country’s investment law was amended in 2005 to allow foreign ownership of buildings, but the legislation had yet to be implemented and the initiative floundered.

Despite current restrictions, billion- dollar skyscraper projects and sprawling satellite cities promising to radically transform Phnom Penh have bloomed over the past few years.

But many projects have been halted or slowed down as Cambodia has been buffeted by the world financial crisis after several years of double-digit growth fuelled mainly by tourism and garment exports.

Source: Business Times, 5 Dec 2009

(SINGAPORE) CB Richard Ellis yesterday said it will open an office in Phnom Penh, Cambodia, as part of a larger plan to expand its footprint in South-east Asia.

The Cambodian office will capitalise on growing demand for professional real estate services from international and local entities. It will provide a range of services including market research, valuation, investment sales, consulting, agency and leasing and property management.

CBRE said it aims to provide a competitive edge for clients in Cambodia’s fast-changing real estate market through a differentiated services portfolio and to establish itself as a key player in the market.

CBRE already has offices in Singapore, Indonesia, the Philippines, Thailand and Vietnam.

The Phnom Penh office will be headed by Daniel Parkes. Before relocating to Phnom Penh, he was based in the UK, where he worked at a real estate firm in the south-east of England. He is experienced in property marketing, valuation and consultancy across residential and commercial sectors.

‘With the establishment of the Phnom Penh office, CBRE will be able to develop local market intelligence into measurable results for clients,’ said Marc Townsend, managing director of CB Richard Ellis Vietnam.

Previously, work relating to Cambodia was handled out of the Vietnam office, which will support the new team in Phnom Penh.

Source: Business Times, 8 Oct 2009