OTK Royal One, a subsidiary of local conglomerate Royal Group, has signed a memorandum of understanding with Chinese state-owned construction firm Sichuan Huashi Group to build Royal One, a $150 million twin tower complex.

The 62-storey mixed-use development will occupy 4,000 square metres on the site of a former traffic police station at the intersection of Russian Federation Boulevard and Monivong Boulevard in Phnom Penh. A used-car lot until recently occupied the space.

The Royal One mixed-use development will include condominiums, office units, retail outlets and a five-star international hotel, as well as a stunning infinity pool perched on a sky bridge connecting the two towers.

“Royal One will become an international building that enhances Cambodia’s image,” Kith Thieng, a representative of Royal Group, said during the signing ceremony on Sunday.

He said construction would commence in September and take three years to complete.

First announced in 2016, Royal One will tower above two nearby high-rise commercial buildings, 32-storey Canadia Tower and the 39-storey Vattanac Capital Tower, currently the tallest building in the capital.

Kim Heang, president of the Cambodian Valuers and Estate Agents Association (CVEA), said Royal One will enhance the image of Cambodia’s construction sector. He noted, however, that while the location of the project in one of the capital’s emerging central business districts was ideal, the success of the project will depend on whether or not the developer has sufficient capital to complete construction.

“Every project must have enough money [to complete construction] because raising capital from pre-sales is impossible in Cambodia,” he said.

A representative of Royal Group was unable to provide details on the project when contacted this week.

Additional reporting by Siv Meng