HLH selling hotel in Cambodian mixed-use project for $15.7m

D'Seaview is HLH's first freehold mixed-use development in Cambodia, comprising 737 apartments and 67 commercial units. The group also holds the land rights to an adjacent freehold site of 22,064 sq m.
D'Seaview is HLH's first freehold mixed-use development in Cambodia, comprising 737 apartments and 67 commercial units. The group also holds the land rights to an adjacent freehold site of 22,064 sq m.PHOTO: HLH GROUP LIMITED

Property firm HLH Group is selling its 98-room hotel in its D'Seaview project in Cambodia for $15.7 million.

The news sent HLH shares up 0.2 cent, or 40 per cent, to 0.7 cent yesterday with 44.5 million shares changing hands.

D'Seaview in Sihanoukville is HLH's first freehold mixed-use development in Cambodia. It comprises 737 apartments and 67 commercial units. The four commercial blocks include a mix of shop space, retail units and a boutique hotel.

The group also holds the land rights to an adjacent freehold site of 22,064 sq m.

Sihanoukville is Cambodia's third-largest province and home to the country's only deep-water seaport. It is also near the popular Sokha beach.

After the hotel deal is completed, 80 per cent of the project's commercial units and 60 per cent of the apartments would have been presold.

"The development has attracted strong interest from local and overseas buyers from... Singapore, Malaysia, China, Taiwan, the United States, Russia and even Belgium," said HLH Group executive deputy chairman and chief executive Johnny Ong.

He noted that the area's tourism potential and burgeoning economic growth are proving to be strong attractions.

HLH pointed to a recent survey by property consultancy firm CBRE Cambodia, which indicated that land prices in Sihanoukville have appreciated rapidly over the past 12 months.

This has been driven by rising international investment in the city's hospitality and resort sector, as well as residential-led projects and manufacturing industries, particularly focused on the city's special economic zones.

Cambodia has had annual economic growth rates of between 6.9 per cent and 7.6 per cent over the past decade, with expansion of 7 per cent tipped for this year.

The construction of D'Seaview's commercial segment is expected to be completed in the second quarter of the year, while the residential part should be finished in the first half of next year.

A version of this article appeared in the print edition of The Straits Times on March 27, 2018, with the headline 'HLH selling hotel in Cambodian mixed-use project for $15.7m'. Print Edition | Subscribe