The Bay is located in the prime peninsula of Chroy Changvar, known as “The City of the Future”, at the confluence of Tonle Sap River and Mekong River. Artist's impressionTEHO INTERNATIONAL's foray into the property sector is not a tentative, modest step.
Called The Bay, the integrated development in Phnom Penh will comprise condominiums, retail space and a luxurious 250-room hotel.
With one of the blocks at 55 storeys and another at 53 storeys, the project will be the tallest in the Cambodian capital. The project will offer views of the royal palace, and Tonle Sap River and Mekong River.
The Bay's gross development cost is estimated to be US$500 milion.
The Okura Prestige Phnom Penh will open in late 2019. It will be the most prestigious among the handful of 5-star hotels in the city.Artist's impressionReflecting its ambition to be an iconic project, the developer has appointed Singapore's ONG&ONG as the architect and Hotel Okura Co. of Japan as the hotel operator under a MOU signed last Saturday (Jan 7) in Singapore.
Hotel Okura, founded in 1958 and headquartered in Tokyo, currently operates 72 hotels in 11 countries under 3 hotel chains, namely Okura Hotels & Resorts, nikko hotels international and Hotel JAL City.
This property project is quite a major diversification from TEHO's other businesses in the marine and offshore oil & gas industries.
These industries contributed S$55.3 million in revenue to TEHO's FY2014 (ended June 30, 2014) while the property segment contributed its maiden revenue of $5.1 million.
Net profit for the group grew 42.5% to S$3.4 million.
Window of opportunity in Cambodia
Dato' Eric Cheng, CEO of ECG Group. NextInsight file photo.TEHO holds a 49% stake in developer TEHO Cambodia while its local partner, Okhna Sok Bun, 51%.
"We recognised a window of opportunity. Now there are not many international developers there to cater to the growing expatriate population and the high-income locals who want quality living," said Dato' Eric Cheng, CEO of ECG Group, the property services subsidiary of TEHO.
The first of four phases of TEHO Cambodia's project, The Bay, will comprise one-bedroom apartments (430-507 sq ft) selling at around US$150,000 each or about US$300 psf.
Dato' Cheng said the pricing is justified given, among other factors, its high quality and its freehold land, and buyers stand to reap capital gain as the Cambodian economy is projected to grow 7% a year over the next few years.
He expects the local-foreigner ratio among buyers would be 55%-45%.
The foreigners being marketed to include Malaysia, Taiwanese, Hongkongers, Japanese and Singaporeans -- and more than 100 units have been sold ahead of the official launch in March, he said.
As for the Okura Prestige Phnom Penh hotel, giving an indication of the market in Phnom Penh, Dato' Cheng said room rates for 5-star hotels are going for US$250-310 currently.
There are now 3 international brand hotels of 5-star standard offering an aggregate of 800 rooms. One new hotel is set to come up in addition to the Okura Prestige.
Demand for hotels is rising. Tourists numbering 4.2 million visited Cambodia last year with Koreans, Japanese and Chinese being among the top visitors.
In addition, more factories are relocating to Cambodia from China and Vietnam.
Said Lim See Hoe, executive chairman and CEO of TEHO International: "The Bay is a major and important milestone for TEHO. We are confident that not only the hotel, but the entire The Bay project is going to redefine the skyline of Phnom Penh as its new iconic masterpiece."
Toasting the TEHO-Okura partnership: (L-R) Dax Ng, MD, TEHO Development (Cambodia) | Okhna Sok Bun | Dato' Eric Cheng, CEO, ECG Group | Lim See Hoe, Chairman and CEO of TEHO International | Toshihiro Ogita, President, Hotel Okura Co. | Hidetoshi Ishimaru, Director, Hotel Okura Co.| Andy Goh, director, ONG&ONG. Photo: CompanyRecent story: TEHO: To venture into Cambodia property development, ECG to provide services
