A slew of lease agreements with business operators were signed on January 25 for tenancy of Prince Square, as construction of the commercial centre nears completion and the Kingdom’s crowded market readies to welcome a new player.
Speaking at the investment agreement ceremony in Phnom Penh, Steven Wang, CEO of operator and developer Prince Real Estate Group, a member of leading Cambodian conglomerate Prince Holding Group, said his company has continually expanded its investment in Cambodia and contributed to economic growth in line with the Kingdom’s rapid development and modernisation.
“Most of the business operators signing with us are from the most famous brands. As a one-stop business centre, Prince Square has been getting a lot attention and support from the government, and development has been on the schedule,” he said.
In a January 27 press release, Prince Holding Group listed some of the tenants as Adidas, Levi’s, Skechers, Nike by Supergo, Huawei, OPPO, Potato Corner, Dakasi, Panda Cake and Pizza Hut.
Wang added: “The signing ceremony is the beginning and long-term operation is the key to success. We hope to get continuous support from all business partners, government officials and everybody else.
“It will also become a new investment opportunity as well as a bright spot in the development of economy and commerce in Cambodia.”
Phnom Penh municipal governor Khuong Sreng said the face of Cambodia – especially its capital – has seen rapid change over the years in harmony with the sound roughly-seven-per-cent annual economic growth logged in the past two decades.
At the same time, he said people’s incomes have swelled, catalysing market opportunity for Prince Square to bring luxurious and well-known brands to the Kingdom.
“Although Covid-19 weighed on the Cambodian economy in 2020, the government put in place timely measures to maintain economic growth and assist distressed enterprises and companies.
“Prince Square’s presence will not only fill the needs of the people, but also be a magnet for investment. With the government’s resolute label of the private sector as an engine of growth and a partner, we welcome and encourage more investment,” Sreng said.
With a total floor area of 35,000sqm, Prince Square is located along Russian Federation Boulevard in Phnom Penh’s Tuol Kork district.
Prince Holding Group says the commercial centre will be a four-storey building with a large supermarket, an international cinema, a fitness club, an exhibition hall, international restaurants, an indoor playground and fashion stores.
Founded in 2015, the group says it has completed several projects in the capital and Sihanoukville and “has contributed to the rapid transformation of urban Phnom Penh in recent years with real estate projects spanning across one million square metres”.
According to real estate firm CBRE Cambodia, Covid-19 continued to deflate demand for retail space in Phnom Penh’s shopping centres and community malls in the third quarter of last year, pushing seven international brands to cut their losses and exit the market.
Vacancy rate stood at around 10.97 per cent as of September 30, up from 10.2 per cent on June 30 and 10.63 per cent on December 31, CBRE Cambodia said in a report released in October.
It noted that total supply jumped 6.1 per cent quarter-of-quarter, highlighting a 26.1 per cent increase in the “community mall” category.
In the third quarter, two new community malls added 21,800sqm of retail space in the capital, while an undisclosed number of other projects with a cumulative 40,000sqm of space were delayed, it said.
Though seven international brands exited the Kingdom in the period from July-September, 18 others made their debut during the quarter.
CBRE Cambodia recommended that landlords revise their lease agreements and be more flexible in their terms and incentives, especially with anchor tenants.
Retailers should reinforce their market strategy by, inter alia, building strong public relations, organising more events and run more promotions, it said.
At the same time, they should look into digitalisation to improve the customer experience via, inter alia, contactless payments, QR codes, online delivery and the social media market, it added.
