Hong Lai Huat, on Dec 22, announced that the FY2022 had “posed a huge challenge” to its business in Cambodia with the rising risk of a global recession, inflation, rising bank interest and mortgage rates as well as other market uncertainties.
That said, the group says the main construction work for its second mixed-use project located at Toul Kork District, Phnom Penh, is “well on schedule” to be completed in FY2023, with 22 out of 28 floors completed.
Both of its residential towers will have a total of 851 units upon its completion.
Barring any unforeseen circumstances, the group plans to hold a topping-out ceremony around February 2023. It plans to hand over the 50 commercial units to its buyers before June 2023.
“Although the sales of the units have been impacted by the challenging market conditions, the group will continue its best efforts to market and sell the residential and commercial units on hand which is estimated to be worth around US$180 million ($243.3 million).
In its current portfolio of property and real estate projects in Cambodia, the group has completed the full-scale mixed-use project, D’Seaview at Sihanoukville. The D’Seaview project currently hold about 196 unsold units on hand which has a market value around US$50 million. Of the unsold units, around 46 of them have been furnished and tenanted.
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There are also plans to further furnish and convert the remaining 150 units on hand for rental purposes to diversify the group’s revenue stream.
In its statement on Dec 22, the board said that the group “will continue to seek opportunities to strengthen its position as a diversified real estate and property developer in Cambodia” despite the global challenging environment.
It adds that it will “thread cautiously” towards FY2023.
Shares in Hong Lai Huat closed 0.1 cent higher or 1.52% up at 6.7 cents on Dec 22.
