Shopping shapes up in Phnom Penh

  • MH192’s number three main wheel burst during take off, says Hishammuddin – Bernama
    MH192’s number three main wheel burst during take off, says Hishammuddin – Bernama

    Preliminary investigation findings on the Malaysia Airlines (MAS) flight MH192 incident has revealed that the number three main wheel of the aircraft had burst during take off. Acting Transport Minister Datuk Seri Hishammuddin Hussein (pic) said the aircraft was currently grounded at the MAS Engineering facility in Kuala Lumpur International... …

  • Bible banned from Pahang hotel rooms – Bernama

    The Pahang Islamic and Malay Customs Council (MAIP) has prohibited hotel proprietors in the state from placing religious reading materials of other religions other than Islam in their rooms. According to MAIP deputy president, Datuk Seri Wan Abdul Wahid Wan Hassan, a letter of prohibition on the matter had been sent to 147 hotels across the... …

  • Pre-lim report to ICAO not public, yet

    Malaysia has yet to decide on whether the preliminary report on the MH370 incident submitted to the International Civil Aviation Organisation (ICAO) will be made public.   "We have issued the preliminary report. We've sent it to ICAO but we have not made a decision to release to media or the public," Department of Civil Aviation Chief Azharuddin Abdul Rahman said during a press conference in Kuala Lumpur.   Asked again on why it will not be released to public, although it is common practice, …

  • Take second job to tackle household debt, urges AKPK – Bernama
    Take second job to tackle household debt, urges AKPK – Bernama

    The Credit Counseling and Debt Management Agency (AKPK) has urged Malaysians to take a second job to help them tackle the high rate of household debt. Chief executive officer Koid Swee Lian (pic) said those in the teaching line, for example, could give extra classes to earn more money. "Teachers could earn more money by giving tuition to... …

  • International team probing MH370 to be finalised next week, Hishammuddin says
    International team probing MH370 to be finalised next week, Hishammuddin says

    KUALA LUMPUR, April 23 — Malaysia expects to finalise by next week the list of members on the independent team of experts commissioned by Putrajaya to carry out an extensive probe on the... …

  • Absolute power corrupts absolutely, Dr Mahathir reminds current leaders
    Absolute power corrupts absolutely, Dr Mahathir reminds current leaders

    Malaysian leaders have been reminded not to look down on the public’s capability to topple a corrupt government as what had happened in the Middle East during the Arab spring, warned Tun Dr Mahathir Mohamad (pic). In his latest blog posting today, the country’s longest serving prime minister said that monarchs and dictators in the Middle East... …

PHNOM PENH: With demand for shopping space in Cambodia on the rise and investor interest growing, the Japanese developer Aeon Mall (Cambodia) Co Ltd last week broke ground on the construction of a US$205 million (RM627.3 million) mall in Phnom Penh.

The 68,400 sq m high-end shopping centre, located in Chamkar Mon district next to the five-star Sofitel Phnom Penh Phokeethra, will include 150 large retail units, a cinema complex that can seat 1,000 people and 15,000 sq m of entertainment space that will include an arcade and recreation area for children, executives said in the past.

“We are happy to contribute to the development of the local economy because it will create more than 2,000 jobs. We want to stay deeply rooted in Cambodia and we want to be loved the most,” Motoya Okada, president and CEO of Aeon Group, was reported as saying at the groundbreaking ceremony by the Japanese media.

He added that Aeon was considering opening other locations in Cambodia.

Kuniaki Minohara, general manager of Aeon’s leasing department, has said when construction finishes in the second half of 2014 he hopes half of the retail units would be occupied with locally established brands, while Japanese brands would account for 30% and other international brands 20%.

The complex will include parking for 1,700 cars and 1,000 motorbikes, while roughly 56,500 sq m of the mall space will be leased out to tenants.

“I think Aeon coming to Cambodia is a really good thing. They are going to bring in a lot of great brands and I think they set out for several target groups that can benefit as the general spending power in Cambodia is growing,” said Sunny Soo, the Cambodia country head for the real estate company Knight Frank.

“Right now, you don’t have any properly managed or professional shopping malls and with the market growing the way it is, Cambodia needs one.”

Cambodia’s GDP per capita has been on the rise since 2006, growing 70% since 2006 to about US$900 last year, according to Cambodia’s Ministry of Economy and Finance.

Aeon acquired the 6.7ha plot of prime real estate between Sothearos Boulevard and the Tonle Bassac river last year from South Korea’s GS Engineering & Construction for an undisclosed amount.

With 62 malls in Japan and China, Aeon currently has new projects in the development phase in additional regional locations like Vietnam and Indonesia. According to Aeon Mall Co’s most recent financial statements, net profit grew 6.17% to ¥9.4 billion (RM341.8 million) in the first half of the year compared with the same period in 2011.

Cambodia’s property market is only now recovering from a bust three years ago that saw the construction of several projects come to a grinding halt. Today, developers are finding a demand for high-end retail projects that, according to recent data by the property services company CB Richard Ellis (CBRE), will triple in total space in the next five years.

Aside from the new Aeon Mall, Malaysia’s Parkson has started construction on a shopping centre in Phnom Penh, while the city’s lone casino, NagaWorld, is gearing up for an extension that will bring in an underground “City Walk”.

If these projects are realised, there could be as much as 312,000 sq m worth of shopping venues in 2017, up from about 105,000 sq m in June, the CBRE report states.

Japanese foreign direct investment in Cambodia reached US$75 million last year, up from about US$35 million in 2010, while the Japanese government has promised an additional ¥10.51 billion to fund several infrastructure projects. With the construction of Aeon Mall, Japanese investments in Cambodia are expected to reach US$300 million by the year-end. — Bangkok Post


This article first appeared in The Edge Financial Daily, on Dec 18, 2012.

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
    MH370 passenger’s partner tells of strange email from sacked Fox officer

    The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

  • The Poop on Pooping: 5 Misconceptions Explained

    Here is the truth behind five common misconceptions about defecating. Misconception No. 1: Daily pooping is normal, and optimal. …

  • Dr Ling’s son chose wine over woman, court hears The Malaysian Insider
    Dr Ling’s son chose wine over woman, court hears

    The son of former MCA president Tun Dr Ling Liong Sik today reached an out of court settlement with his ex-girlfriend in a breach of contract suit over seven properties registered under their joint names. Ling Hee Leong and businesswoman Teh Chee Yen agreed to settle out of court after he took the stand briefly and testified that he had chosen... …