Kingsland Ventures, a subsidiary of property development firm Kingsland Global, has signed an agreement to establish a foothold in Shukaku’s Phnom Penh City Centre (PPCC) via the development of a business centre that will cost about $71 million.

Earlier this week, Kingsland told its shareholders it had signed a joint venture with Shukaku subsidiary Urban Global to develop 10,000 square metres of real estate in what they dub will be the new central business district of Phnom Penh.

The agreement will see Kingsland develop a project that will comprise “office towers, restaurants, banking services, medical centres, a hotel, a convention centre, and an IT and media hub and will also serve as a connecting point for businesses to enjoy enhanced communication while harnessing opportunities and improving productivity.”

“Kingsland Global believes that the project represents the next step in Kingsland Global’s active pursuit of quality and value-added developments and will further enhance Cambodia’s business landscape while strengthening its local talents,” the Australian Securities Exchange-listed company said recently.

Under the agreement, Urban Global will procure the land title for the project and obtain all necessary permits while Kingsland Ventures will be responsible for the management of the project. Urban Global will hold the majority stake of the project with a 51 percent share.

Kingsland Ventures will stump up the funds for the development in tranches over six years by way of issue of redeemable preference shares in Kingsland and subsequently through pre-sales of the project.

The development is expected to take three to four years to complete in time to open its doors to the public in 2021.

PPCC director Alex Lau told Post Property that Kingsland had a sound understanding of how the local cultural, authorities and contractors worked, making them a logical partner for PPCC.

“For Kingsland, we do see their passion and commitment to achieve the same goals as us,” he said.

“With the same mindset, both parties would have a good synergy and PPCC’s vision of a bustling and international business hub is more likely to be accomplished.”

Kingsland Global, which specialises in commercial and hospitality property development across Asia, is becoming increasingly active in the Phnom Penh market having recently entered into a $3.6 million purchase agreement to acquire a 25 percent stake in the Lumiere Hotel located in the city from Vivaz Group Holdings Pte Ltd.

Other developments under the company’s property arm include One18 Residences, a luxurious 24-storey apartment in the heart of Phnom Penh city.

The massive PPCC, a sprawling mixed-use development that has sprung up in the former Boeung Kak lake area, is expected to house more than 56,000 residents come 2035.