Vattanac Properties signed an agreement with the South Korean firm Posco Construction and Engineering on Wednesday to build a $150 million 38-story skyscraper on Phnom Penh’s Monivong Boulevard.
Vattanac Capital tower is scheduled to be finished in 2012, according to the company, and the project aims to exceed the height of its neighbor- the 28-story Canadia Tower, currently the tallest building in the country. Vattanac broke ground at the location in 2005.
“Despite the affects of the global economic crisis we remain unwaveringly committed to building this complex,” said Chhun Leang, president of Vattanac Properties Limited.
Ms Chhun Leang and her family own Vattanac Bank and are the local partners for Cambodia Brewery Limited, which brews Anchor and Tiger beers. The building will offer 128,000 square meters of office and commercial space.
Prak Sideth, general manager of Vattanac Properties, said that though the project broke ground in 2005, it has not risen above ground level because of adjustments to Vattanac’s original plans.
He said original plans called for a $30 million, 18-story building, and subsequent changes required more pilings and a change in contractors.
“We have a good view of Phnom Penh City and we want to invest more,” he said.
Posco broke ground last year on its own three-tower complex topping 45 stories near the Bassac River and is scheduled for completion 2013.
The Vattanac Capital building will finish within a year of another ambitious project, Gold Tower 42 at the corner of Monivong and Sihanouk boulevards, which is scheduled to be finished in late 2011.
Mr Sideth said Vattanac is not concerned about the large amount of office space that is already available or that will become available in the next few years.
“We are preparing for the business growth in Cambodia,” he said.
Siev Sophal, managing director of Time Property, predicted most office buildings will have demand for occupancy in the next few years.
“Office space has the good future,” he said. “In the future we will need good high end office space.”