- Strategic partnership that pushes the inflow of mutual real estate investments between Cambodia and EU-member states
- Portugal’s property purchasing allows foreign buyers to secure loans up to 70% of the property value with the interest rate at 1,2% per year.
- Foreign direct investment injected into construction and real estate represents about a third of Cambodia’s GDP.
- Real estate transactions in the EU bloc exceeded $300 billion last year.
“More or less, this is a combining strength or sharing common enthusiasm in real estate investments. We are striving to be an authentic force for Cambodia to grow as fast as developed countries.”
Local and international firms have entered into an agreement to create new investment opportunities in real estate for investors in Cambodia, Portugal, and Canada. This collaboration will also play a vital role in attracting investors from the EU member states to inject their funds into Cambodia’s real estate market.
Five companies have announced a strategic collaboration, signing a Memorandum of Understanding (MoU) on 18 February 2022 at Hyatt Regency Phnom Penh. The MoU was penned by Mr. Kuy Vat, Group Chairman of Zillennium Co., Ltd, Mr. Say Sokheng, Chairman and CEO of Z1 Financial, Mr. Va Vireak, CEO of Century 21 Fortuna Investment, Mr. Jerry Morgan, President and CEO of Mercan Group, and Mrs. Jasmine Dang, Mercan Group’s Regional Director for SE-ASIA region.
Z1 Group is one of the leading real estate marketplaces in Cambodia. It is a local conglomerate, and Singapore-based Z1 Financial – a digital asset management and investment service company – is part of its business. Century 21 Fortuna Investment is a real estate service company in Cambodia; it operates under the franchise of Century 21 Cambodia. Mercan Group is an immigration consulting company based in Canada.
Speaking at the MoU signing ceremony Group Chairman of Zillennium Co., Ltd Mr. Kuy Vat, said this collaboration is an important joint force in a bid to boost the mutual investments between Cambodia and one of the world’s largest economic blocs – EU envisaging the move will attract and increase more inflow of investments to the Kingdom.
“More or less, this is a combining strength or sharing common enthusiasm in real estate investments. We are striving to be an authentic force for Cambodia to grow as fast as developed countries,” he emphasized.
Mr. Jerry Morgan, President and CEO of Mercan Group, said the real estate market in Cambodia and EU members boast their high potentials but different opportunities.
He said, “I see many interesting areas where we can operate together. Cambodia is an opening investment environment for more opportunities for capital gain,” adding that, “I think it is an exciting market, and it is the place where we can invest property greatly. Europe is a more stable environment, it is just different opportunities.”
Under his company investments, according to him, 40 projects are investing in the United States, and 15 projects are elsewhere in Portugal. Under the investor immigrants category, Mercan Group has raised over $1.5 billion in foreign investment capital for various projects in Canada, USA and Portugals.
Real estate transactions in the European Union recorded a whopping $326billion in the whole year of 2021. This is a 9 per cent jump on last year, according to real estate market research by UK-based Savills. The same report stated that transaction volume is expected to be at the same levels in 2022.
European Union consists of 27 members, and it is one of the largest economic blocs in the world. The bloc posted its annual GDP growth of 5 per cent in 2021, which translates into a GDP of $15 trillion. Real estate insiders have suggested that Portugal is one of the attractive destinations for real estate investment among other EU members.
Mr. Va Vireak, CEO of Century 21 Fortuna Investment, said Portugal is not only boasting its high potential for property investments, but its security situation and modern health care system make it an attractive place to live in, with living costs among the lowest in the EU.
Mr. Vireak is the first Cambodian certified international property specialist (CIPS). He has extensive experience to facilitate property transactions overseas, especially namely in Canada, US and Portugal.
“Property investment in Portugal is attractive. Foreigners can secure loans up to 70% of the property value, and 30% for a down payment. Interest rate is quite interesting and relatively low at 1.2 per cent per year,” he explained.
He went on to state that this cooperation will also make it easier for Cambodian investors seeking partnerships with others investors from the EU member state to invest in Cambodia’s potential sectors, especially in real estate.
Attracting and encouraging foreign investments is in line with Cambodia’s government policy, particularly the new investment law – which took into effect recently – aims to boost foreign investment in the hope of driving its economic growth.
A report from the World Bank showed that the construction and real estate sector had been the largest engine growth in recent years, contributing more than a third of Cambodia’s GDP growth in 2019. The sector is mostly represented by foreign direct investment (FDI). FDI volumes in Cambodia was worth $3.4billion in 2019 and hit $3.6billion in 2020 – respectively.
Say Sokheng, Chairman and CEO of Z1 Financial, told reporters at the event saying that this strategic collaboration is another step further for Cambodia real estate sector, boosting its potential while attracting more investors from overseas.
“Investors from Portugal, Canada, other EU members and investors from United State will be conveniently accessible their investments in Cambodia through Mercan Group,” he said, adding that investment projects that investors can invest in Cambodia could be hotel, resort, holiday villa and even commercial buildings.