CapitaLand Retail has signed an agreement to manage a mall in Phnom Penh, the capital of Cambodia and one of the fastest growing economies in Southeast Asia.
The mall is the retail component of The Peak, an upcoming high-end integrated development majority owned by Singapore-based developer Oxley, in partnership with Cambodian company Worldbridge Land.
The deal extends CapitalLand’s expertise in operating shopping malls to a new market after Singapore, China, Malaysia, Japan, India and Vietnam.
Mr Wilson Tan, CEO of CapitaLand Retail, said, “As the retail operating platform of the group, CapitaLand Retail is focused on growing our premier retail operations into a global platform. Through management contracts, we can scale CapitaLand’s shopping mall network in an asset-light manner. With CapitaLand’s proven track record in running successful malls across Asia, we are well-placed to explore new growth opportunities by offering our professional expertise in retail management to property owners.”
Located in Chamkarmon District in central Phnom Penh, The Peak is a freehold 55-storey integrated development comprising an office tower, the country’s first Shangri-La Hotel with 300 guest rooms, and two luxury residential towers with 1,014 apartment units sitting atop a mall.
CapitaLand will oversee asset planning, pre-opening and retail management for the five-storey mall with a Gross Floor Area (GFA) excluding car park of about 420,000 square feet (sq ft) and Net Lettable Area of about 260,000 sq ft.
Currently under construction, the mall is expected to commence operations in 2020.
“Cambodia has in recent years attracted the interest of international retailers – including Singapore-based brands – who are keen to tap the country’s rising spending power and growing tourist arrivals. This has led to an increase in demand for well-located and well-designed retail spaces in the country. Given The Peak’s strategic location in central Phnom Penh and high-grade building specifications, it is well-positioned to meet the requirements of quality retailers seeking to serve the growing aspirations of the city’s community. CapitaLand will leverage our expertise in retail asset management and industry leading retailer network of about 17,000 leases to maximise the retail potential of The Peak,” Mr Tan added.
Located along the river esplanade, The Peak overlooks the Mekong River and Phnom Penh’s bustling cityscape. Surrounded by high-end residential developments and key commercial and government buildings, The Peak’s immediate catchment area covers the prime residential and commercial districts of Chamkarmon and Diamond Island.
In Phnom Penh, CapitaLand also manages three serviced residences through its wholly owned serviced residence business unit, Ascott. They are CASA Meridian Residence, which is operational, and Somerset Norodom Phnom Penh and Somerset Meridian Square Phnom Penh opening this and next year respectively.
