A groundbreaking ceremony was held on Thursday for a $230 million 62-storey twin building project in Phnom Penh, scheduled to be completed by 2023.
The project is a joint venture between Royal One, a subsidiary of Kith Meng’s The Royal Group, and Sichuan Huashi Group Co Ltd (Huashi Group), a real estate and construction company from China’s Sichuan province.
The Royal One twin building is located at the intersection of Russian Federation Boulevard and Monivong Boulevard, at the site of the former Phnom Penh Municipal Traffic police building, which is built on 4,036sqm and has a total height of 230m.
Tallest building in the capital
Speaking at the groundbreaking ceremony on Thursday, Royal One chairman Kith Thieng said the Royal One will be the tallest building in the capital and will help promote the Kingdom’s image.
“The Royal Group believes that the presence of the luxury building will be a part of Cambodia’s national pride, proving Cambodia’s capabilities and progress on the international scene,” he said.
The building, which will have six subterranean levels of underground parking, will be used as a mixed commercial building, including condominiums, offices, shopping malls, restaurants, hotels, clubs and gymnastics.
Ministry of Land Management, Urban Planning and Construction secretary of state Lao Tip Seiha said the building is a good sign for the Kingdom’s construction sector.
“When there are more such large buildings, it also shows the progress and strong economic growth in Cambodia. This building not only helps to promote the Capital’s landscape, but it will also create jobs and good work experience for the Cambodian people,” he said.
Huashi Group representatives, who participated in the groundbreaking ceremony, declined to provide details of the project.
Cambodian Valuers and Estate Agents Association president Chrek Soknim said if the project is completed as planned, it will greatly help promote the Kingdom’s construction and real estate sectors.
“Royal One is a very attractive project because it is in the best location in Phnom Penh,” he said.
‘Cambodia not living alone’
According to Soknim, land price at Royal One’s location currently costs between $4,500 and $6,000 per sqm.
Though some claim that the number of tall skyscrapers exceeds demand, Soknim said it does not matter because Cambodia is not ‘living alone’.
“Cambodia is an Asean member, so the number of investors and those who come to work in Cambodia will be greater in the future,” he said.
Ministry data shows that construction investment capital last year was worth $5.228 billion, down 18.66 per cent compared to 2017, worth over $6.428 billion. It shows that there are currently more than 1,200 buildings in the Kingdom five storeys or higher.
Ministry spokesman Seng Lot said he welcomes all projects which obtain ministry permission to begin construction so that investment can be accelerated.
“Starting construction on the [Royal One] is another good sign for the Cambodian economy,” he said.
He requested, however, that all projects must be carried out in accordance with technical standards and high safety measures to ensure smooth construction.