May 10, 2012

By Andrew Batt

Phnom Penh’s skyline is continuing its transformation with today’s topping-out of the 39-storey Vattanac Capital Grade-A office tower.

Vattanac Capital is a development of excellent quality and will offer the first international recognised ‘A’ Grade accommodation. Some of the key features of the development are the 31 lifts, clear floor to ceiling heights of up to 3.45 metres, column free office floor plates, raised floors, and an iconic design by TFP Farrells.

A development such as Vattanac Capital would be stand out in any city in the world, however as Phnom Penh has not seen a development of this type before, it makes the development even more remarkable and it is a true pioneer in its own right. This extends from the development quality to the specifications provided.

Not only does this development mark the start of a new area of development, but it also underlines the developer’s commitment to competing in terms of quality and modernity with the best Grade-A developments in Hong Kong, Singapore and, indeed, any major capital city in the world.

Due to the shortage of quality modern office space, many companies currently in Cambodia including multinationals and the World Bank have located in renovated villas. The main problems with villas are the hidden costs and the need for tenants to organise and provide all the services at their own cost. In a modern, purpose-built office environment all these are provided by the landlord.

Office tenants in cities such as Bangkok, Ho Chi Minh and Hanoi, have all migrated from villas to modern office developments. CBRE, the sole agent for Vattanic Capital, predicts that Phnom Penh will follow suit when the building is ready for occupation later this year.

Cambodia’s strong growth driven economy is a growing investment destination. Vattanac Capital is the right development and it is coming to the market at the right time. In Phnom Penh, current office stock is only 150,000 sqm.

Mr. Vattanac Sam Ang, Executive Director of Vattanac Properties Limited, said: "Vattanac Capital will be the finest development of its kind for many years to come, and home to companies who are seeking to affirm a powerful presence in Cambodia and the region. It will not only permanently transform the skyline of Phnom Penh, but will also be one of the key factors that will attract new investments into Cambodia. We are honoured to play a key role in raising the profile of Cambodia."

Demand for Vattanac Capital will mainly come from multinational companies. The insurance industry is a big growth sector in Cambodia, along with transport, shipping, the financial sector, construction industry and diplomatic bodies. There is increasing pressure on diplomatic missions to move out of Villas and into efficient and secure space. The rate of change from people moving out from non-purpose built office space is gaining momentum and when tenants upgrade, they will seek the best space available.

"At present, whilst the development is still under construction, we see a very significant reaction when tenants view space. Even at this early stage of marketing, it is clear the development is of substantially better quality that anything Phnom Penh tenants have ever seen," said David George, CBRE Cambodia’s Country Manager.

Vattanac Capital will also contain approximately 11,500 sq m of premium retail space in the Podium destined to accommodate luxury international brands and supporting services. Levels 25 to 33 will provide approximately 150 Serviced apartments and the property will be managed to international standards.

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