The Bay to begin construction in first quarter of 2016
Thu, 17 December 2015 ppp
Kali Kotoski
The Bay, a $500 million project located on Chroy Changvar peninsula. Photo supplied |
After
a tumultuous year in Cambodia for Singapore-based TEHO International,
the developers of the $500 million The Bay condominium project on Chroy
Changvar peninsula said construction will begin early next year with a
new marketing strategy after another managerial shakeup.
Announced
on the Singapore Stock Exchange earlier this week, ECG (Cambodia) was
bought out and formalized into the parent company ECG Property—a wholly
owned subsidiary of TEHO International that handles all marketing and
promotional activities.
Previously
operated by the joint venture’s partner, Sok Bun, ECG Cambodia was
purchased to a tune of $71,776, or what amounted to 45 per cent of the
initial paid-up share capital. Currently, the unaudited net assets for
ECG Cambodia as of July 2015 amounted to $169,836, the statement read.
While
ECG Cambodia will still perform its duties as the acting real estate
agency for The Bay, all marketing and promotional activities will be
conducted at the head office back in Singapore.
Phua Cheng Boon, Financial Controller for TEHO International, said, “it is good to have full integration of our projects.”
“We will have somebody based in Singapore who will be able to run operations regionally as well,” he said.
It
was previously reported by The Post that 100 condominium units had been
sold since the soft launch in September. However, Phua declined to
provide current figures.
“While
we can’t disclose the level of sales, we are confident to say that
construction will begin in the first quarter of 2016,” he said.
With a new marketing strategy, he added, the development “will not be about big exposure.”
TEHO
International, which formally launched the project in February of this
year, had spent $1.1 million on advertising and promotional activities,
as well as around $600,000 in legal and professional expenses to promote
the development, an annual filing in August stated.
While
Sok Bun, who resigned from his position as director of the board,
currently awaits trial for the beating of a former TV star, his shoes
has since been filled by Yim Chhay Line, the daughter of Deputy Prime
Minister Yim Chhay Ly.
“She
is a good asset to the group and I am confident that all the necessary
requirements for construction have been achieved,” said Phua.
Kim
Heang, CEO of Khmer Real Estate, said that a marketing shift to
overseas investors is the “smartest” market strategy for The Bay, as it
faces more competition and is also behind schedule.
When
asked if The Bay would miss out on the local segment, Heang explained
that it is too small, “so why [do] they need to waste time and money
[on] the local segment?”
With a few soft approaches to buyers in Japan, Hong Kong and Taiwan recently, Phua said sales “have picked up.”
“We
are doing this gradually because The Bay is a rather large project. We
are going to all these different countries to do soft launches to get
sufficient buying. We want to position [ourselves] as [a] more exclusive
development,” he said.
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