Source: Phnom Penh Post
Japan’s Aeon Mall Co is to spend more than $200 million building its third shopping mall in Phnom Penh as the firm eyes the Kingdom’s burgeoning middle-class.
Construction on Aeon Mall 3 in the capital’s Meanchey district is to begin early next year as a result of the firm’s $289.6 million investment, which was approved by the Council for Development of Cambodia on Wednesday.
According to the Aeon Mall Co’s financial report for the year, the mall is to cover 174,000sqm in Ing City, some 7km from the centre of Phnom Penh.
The company enjoyed strong growth in the Asean region, according to its Medium- and Long-term Initiatives Report released in early October.
“While overseas developers tend to emphasise efficiency, our malls in China and Asean feature a large, flat parking area – reflecting our understanding of the modernisation of the region. These parking lots will also serve as a competitive advantage in future expansion.
“We conduct shopping mall management and operations that compare favourably with Japanese malls, offering facilities that provide safety, security and comfort on par with [Japanese standards],” the firm said.
Real estate firm CBRE Cambodia’s director An Thida told The Post on Thursday that Aeon Mall 3 would complement Ing City’s fast rate of development as the project aims to appeal to the Kingdom’s middle-income households.
“The south of Phnom Penh, where the mall is to be built, is developing [rapidly] and middle-class families are flocking there. [Aeon Mall Co] conducted a study on demand [for the retail space] before they decided to invest so heavily there. This will be another success for them,” Thida said.
However, she said that the Kingdom’s purchasing power remained low as consumer spending was largely directed towards food and entertainment.
The first Aeon Mall in the capital’s Chamkarmon district opened in 2014 with capital investment of some $205 million. Aeon Mall 2 opened in Sen Sok City in June last year, with capital investment of around $120 million to develop the 68,000sqm of retail space.
Cambodia has 21 shopping malls in Phnom Penh with a total combined area of 337,400sqm, according to the CBRE Cambodia.