Plans appear to be in the works to develop a central stretch of prime riverfront real estate currently owned by a state-run enterprise into a sprawling commercial development, according to sources involved with the landowner, though key government officials professed to be in the dark as to the nature of the deal.
The 9.25 hectares of riverside land, stretching from the Night Market to the Chroy Changvar Bridge on the east side of Sisowath Quay, was reclassified from state-public to state-private land in a royal decree signed by Prime Minister Hun Sen last month. A large portion of the land – independently estimated to be worth hundreds of millions of dollars – is currently occupied by the state-run Phnom Penh Autonomous Port (PPAP).
The new designation opens up the plot to be sold or leased to a private company for development.
Profits from the sale of the land could end up in the hands of the Ministry of Economy and Finance (MEF), which owns 80 percent of PPAP’s shares, according to the Cambodia Stock Exchange. A representative of real estate firm Century 21 Mekong has estimated the value of the land at $4,000 to $6,000 per square metre, which would make the stretch of reclassified land worth between $350 million and $550 million.
Contacted on Wednesday, PPAP director-general Hei Bavy referred questions to a port official named Chanthy and gave a reporter the official’s phone number.
The man who answered that phone declined to confirm or give his name, but said that the PPAP had a project in the works with a private company to develop the stretch of land. He said the company had not yet received permission from the government, however, so details were sparse.
“The development may consist of a condominium, hotel, office building and will be a hub of commercial activity,” he said, insisting the port would not have to relocate. “We will keep the port functioning.”
A document posted to the Facebook page of Chinese developer Yue Tai Harbour Bay shows an artist’s rendering of the same stretch of riverside lined with more than 20 tall buildings. The first picture was posted to the page in November, about four months before the land officially became available for private development.
A representative of Yue Tai confirmed that a project existed on that plot of land, but declined to provide any further information. (For more details on the development, turn to page 3 of Post Property.)
The PPAP official contacted by The Post declined to confirm Yue Tai was the private partner for the project. He also declined to give any information regarding construction or sale timelines, noting that the PPAP was a publicly listed company on the Cambodia Stock Exchange and thus any official announcements would need to be made in a filing.
Key government officials, including some at the PPAP itself, have said that they don’t have any information on the project.
Penn Sovicheat, who sits on the PPAP board of directors as the representative from the Commerce Ministry, said on Wednesday he was unaware of any plan to sell the land.
Va Sim Sorya, a spokesman for the Ministry of Public Works and Transport (MPWT), and Ken Ratha, the deputy director of the ministry’s cabinet, both said they did not have detailed information about the project and referred questions to the PPAP.
MEF spokesman Nup Sothun Vichet declined to answer questions about the project on Tuesday and referred reporters to the MPWT.
The only other shareholder with more than a 5 percent stake in the PPAP is Mekong Strategic Partners (MSP), a private investment firm in Phnom Penh.
Stephen Higgins, managing partner at MSP, said on Wednesday his company had known for some time that PPAP was looking to rent the riverfront land.
