CapitaLand to manage Oxley's 420,000 sqft mall in Phnom Penh opening in 2020
CapitaLand to manage Oxley’s 420,000-sqft mall in Phnom Penh opening in 2020
Extends retail footprint to Cambodia and growing a pipeline of retail management partnerships
Singapore, 20 March 2018 – CapitaLand, through its wholly owned shopping mall business CapitaLand Retail, has signed an agreement to manage a mall in Phnom Penh, the capital of Cambodia – one of the fastest growing economies in Southeast Asia. This will extend its expertise in operating shopping malls to a new market after Singapore, China, Malaysia, Japan, India and Vietnam. 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.
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.
Mr Tan added: “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 Ching Chiat Kwong, Executive Chairman and CEO of Oxley Holdings Limited, said: “As a fast-growing developer with an expanding international portfolio, we seek partners with complementary skill sets that can support the smooth operations of our assets and enhance the profile of our development projects. CapitaLand has a strong reputation for retail management and is well-known for its extensive retailer network. With CapitaLand as our retail manager, we are confident of optimising returns for The Peak by focusing on our core business of developing and marketing the project. Given Oxley’s diversified global portfolio in countries including Singapore, United Kingdom, Ireland, China, Indonesia and Myanmar, we look forward to the possibility of deeper collaboration with CapitaLand in the future.”
Located along the river esplanade, The Peak overlooks the historic 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.
CapitaLand first announced its strategy of growing its retail footprint through management contracts in August 2016, to complement its core strategy of developing and managing its own malls. Including The Peak, CapitaLand has signed eight retail management contracts to date. The seven other management contracts are for six malls in China and one in Singapore.