Hong Lai Huat makes progress in Cambodia

By The Edge Singapore

/ EdgeProp Singapore |

January 19, 2022 7:21 PM SGT

Main construction site for Royal Platinum (Credit: Hong Lai Huat)

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SINGAPORE (EDGEPROP) - Hong Lai Huat is optimistic on the sales and progress of its Royal Platinum and D’Seaview project units, amid improving Covid-19 situation in Cambodia.

Read also: PropNex expands into Cambodia, boosts regional salesforce to 12,000

In a business update, the company said Royal Platinum’s main construction work is well on schedule and has reached the 10th floor out of the total 28. The project, which is Hong Lai Huat's second mixed-use project in Phnom Penh, has a total combination of 851 residential units and 50 commercial units.

About 90% of the commercial and penthouse units of Royal Platinum were sold to both local and international buyers.

“With a total gross development value of US$220 million, sales are progressing well and the group remains optimistic on the outlook for FY22 especially after the Cambodian government announces quarantine free travel for the fully vaccinated back in Q4 of FY21,” the company said.

On Sept 2020 and Nov 2021, Hong Lai Huat acquired its third and fourth plot of land bank in Phnom Penh as well as Sihanoukville province. Both projects are currently undergoing feasibility studies and designing phases.

Based on the preliminary figures estimates, both projects will have a total gross development value close to US$400 million.

In October last year, Hong Lai Huat entered into a joint venture agreement with HSC Group for the exploration and mining of mineral resources in the construction material zone within the Agri Hub.

The license applications are currently under review, pending regulatory approval from the authorities in Cambodia. The group will continue to seek strategic partners for lease or joint cooperation on other land plots in the Agri Hub moving forward.

Hong Lai Huat has sufficient liquidity from the corporate actions in FY21 such as the rights issue, sale of its property units, sale of D’Seaview hotel and sale of its subsidiary in Singapore to meet its near-term debt obligations and operation needs.

The group will share its FY21 financial results by Feb 28.

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