Singapore's The Ascott Limited (Ascott), the wholly-owned lodging business unit of CapitaLand Investment, has entered into a management agreement with the Overseas Cambodian Investment Corporation (OCIC), for the management of Somerset Diamond Bay Garden Phnom Penh in Koh Pich.
The agreement was signed by Serena Lim, Chief Growth Officer of The Ascott Limited and Dr. Lim Lina, Vice Chairwoman of the OCIC Group, on March 26, 2024 at the Canadia Tower in Phnom Penh. Key guests attending the event included Andrew Tay, President of the Singapore Chamber of Commerce, Anthony Galliano, Group CEO of Cambodian Investment Management (CIM), and Ann Thida, Managing Director of PropNex.
About The Somerset Diamond Bay Garden In Phnom Penh
Somerset Diamond Bay Garden Phnom Penh is part of OCIC's Diamond Bay Garden property project, an upcoming 37-floor high-rise residential development that overlooks the Mekong River. The property received the Award for 'Best Waterfront Condominium Asia-Pacific' at the 2023 PropertyGuru Asia Property Awards held in Bangkok. The Somerset at Diamond Bay Garden will be located on 10 of the property's higher floors, and will mark the sixth addition to The Ascott Limited's portfolio in Cambodia, as well as the second under the 'Somerset' brand.
"We are thrilled to collaborate with OCIC and anticipate Somerset Diamond Bay Garden Phnom Penh to become a premier destination for both business and leisure travellers," said David Cumming, Regional General Manager of The Ascott Limited in Vietnam, Cambodia & Myanmar, during the press conference after the signing ceremony.
"This new agreement expands Ascott’s presence in Cambodia to six properties spanning more than 1,200 units. Somerset Diamond Bay Garden Phnom Penh offers a diverse range of accommodations, from studios to three-bedroom units, catering to short-stay and long-stay demands in the fast-growing Southeast part of Phnom Penh. We hope that this ground-breaking collaboration will set a positive precedent for future endeavours between Ascott and OCIC," he added.
Commenting further on the partnership between OCIC and The Ascott Limited, Tea Thierry, Vice President of OCIC Group, told B2B Cambodia: "We have been in discussion with them for quite some time, it has taken a lot of time to discuss and negotiate a conclusive opportunity. Today, we have an economy which is coming back, we have the opportunity to provide both existing and future customers a higher level of service for a new property, which is something we have as a common vision."
"We are very happy to welcome Ascott as a partner of OCIC Group for the development of Koh Pich and Cambodia," added Thierry.
Koh Pich's Development As Another Central Business District In Phnom Penh
The Ascott Limited shared that one of the main reasons the company chose OCIC's Diamond Bay Garden in Koh Pich for its Somerset brand was because of the property's central location – a five to ten minute drive from landmarks such as the Independence Monument, Royal Palace, National Museum, Aeon Mall and Norea City – and its prime river view of the Mekong, Tonle Sap and Tonle Bassac.
"Koh Pich has been growing in terms of occupancy, we are seeing a plus 30 per cent rise year on year, and there are more cafes and restaurants coming up as well," Thierry told B2B Cambodia, noting Koh Pich's developing mix of commercial and residential properties. "We also have the Connexion building, which is home to tech startups, so a lot of young people are coming in to the area and we see this community of more than 15,000 people who either live or work in Koh Pich who will benefit from the Somerset Diamond Bay Garden."
"One thing we liked about the [property] was the amount of open space [around it], which plays into some of our (The Ascott Limited's) brands very well, specifically the Somerset brand," Cumming added. "It's definitely an area and a developer (OCIC) that we identified we would like to do something with, and the opportunity for Diamond Bay Garden came up."
Entering A New Property Cycle: Cambodia's Developing Real Estate Market
With The Ascott Limited continuing to expand its presence in Cambodia, Cumming spoke to B2B Cambodia about what makes the country's real estate and hospitality market attractive for the Singaporean company.
"Cambodia as a country is growing very fast as a business hub, but also as a tourism, destination both in Siem Reap and Phnom Penh," he said. "I see that people can easily do three nights in Angkor Wat and come down to Phnom Penh for three nights as well. There's a great food scene here and lots to do, so I think on these two fronts, Cambodia is moving forward."
"I think the new airport (the Techo Takhmao International Airport) shows the vision of the country and the three phases they've got planned to expand it. Many other countries wait till the airports become overcrowded before they make a new one, but here they didn't, I like that vision... Then also, there are new developments... such as the Norea City development that OCIC is also involved in, which shows the country is slowly maturing and has new opportunities that exist, so it's definitely a market we want to be in...
We currently have three signings that are under different stages of development, and I could see us hopefully in three or four years [increasing] that up to 10 to 12 properties in different locations under different brands in Cambodia as a whole.
When asked about how he sees the real estate market in Cambodia continuing to develop down the line, particularly in light of significant downturns observed in the past few years, Thierry expressed optimism in seeing the market recover.
"I believe that real estate is about cycles, you have ups and down, but over the long term, you will go up" said Thierry.
Cambodia has to be looked at as a movie. People can take photos of today, photos of yesterday, photos a few years from now, but essentially, we have to look at Cambodia like a film [that is still playing out], we know it's still growing, We are an emerging market.
"Over the next 10 to 20 years we are going to see growth... The investment we make today will be impactful in the next three, four, five, 10 years. This is why we continue to invest in the Cambodian market. We are very confident in the Cambodian market and very bullish about the long term outlook," he concluded.
Parts of this article were sourced from a supplied press release.