Cambodian Property Market Updates. 23 rd VPC Regional Conference October 30 th - November 1 st, 2015 Shangri-La Hotel, Jakarta, Indonesia.

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2 Cambodian Property Market Updates 23 rd VPC Regional Conference October 30 th - November 1 st, 2015 Shangri-La Hotel, Jakarta, Indonesia.

3 Myanmar Kunming Southern China Yangon Thailand Bangkok Hanoi Laos o Vientiane Vietnam CAMBODIA. Phnom Penh Manila The Philippines Kuala Lumpur Malaysia Singapore Brunei Begawan Jakarta Strategic location in South-East Asia Indonesia 3 3

4 Overview Land area : 181,035 sq.km. Population: 15.3 Million (2013) Labor force (young) : 7,053,398 Population growth rate : 1.8% Age structure : 0-14 years: 31.9%; years: 21.9%; years: 37.5%; years: 4.9%; 65 years and over: 3.8%

5 Economic Indicator Real GDP: 7.60% (2013) Real GDP: 7.20% (2014) Inflation: 4.6% (2013) Inflation: 3.9% (2014) Unemployment: 1.24 (Average) Currency: KHR 4,040 = 1USD Fix Deposit: 3%-5% Interest for Lending: 8%-10%

6 Foreign Direct Investment

7 Real Estate Highlight

8 High Rise Projects 1. The Peak 2. Shangry-La 3. The Bay 4. Diamond Twin Tower 5. Sky Apenines 7. The Garden Residency 8. TK Royal One 9. Axis Residences 10. Skylar Meridian 11. Suncity Bassac 12. Embassy Central 13. The Gateway 14. CAMHOMES 15. Bodaiju 16. Eastland 17. ECC 18. The East One

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13 Mr. Ko Sek Yan, Founder and CEO of Meidian International Holding in Hong Kong called cambodian property property market the Golden Period of Hong Kong in the 1980s, Déjà vu!

14 Knight Frank: Cambodian property hotter than Asian average

15 Japan s Creed Group: First Japanese Condo: Bodaiju

16 The Peak & Shangri-La

17 Singapore s biggest project in Cambodia, by HLH Group

18 Land prices rise in prime areas

19 Office space increase

20 Property Market Overview The Real estate market in Phnom Penh generally increased 10% to 20% year on year. CBD and commercial road price increased 15%-20% y-o-y Residential area price increased 10%-15% y-o-y Strategic development area land price increased up to 30%-50% y-o-y Other property types increased 5%-10% y-o-y

21 Commercial Land price for CBD in Phnom Penh range USD 3,000-USD 5,000/ sq. meter. Office rental grade A average USD 25/sq. meter; grade B average USD 15/sq. meter; grade C average USD 8/sq. meter. Vacancy rate for office space rental approximated 13%.

22 Commercial 2 nd Aeon Mall set to start construction next year after success of first mall open in late Parkson Mall Phnom Penh set to open next year. Shopping mall and premier retail space rental average USD 25/sq. meter. Vacancy rate for hotel increase due to impact from unstable situation in Thailand.

23 Residential Land price for prime residential area range USD 1,500-USD 2,500/ sq. meter. Land price in sub residential area range USD 500-1,000/sq. meter. Average condo price in prime area USD 2,500/sq. meter. Average condo price in residential area USD 1,300/sq. meter.

24 Residential Foreign ownership on Condominium draw a lot of real estate investor from Singapore, Japan, Hong Kong, China, Taiwan, Currently there area 31 project finished and unfinished condominium project in Cambodia developing by Cambodian, Singaporean, Taiwanese, Hong Kong, Japanese and Chinese developers. Overall supply of condominium will be increased 533% in 2018 due to under construction and future project.

25 Industrial Average land price for SEZ in Phnom Penh USD 80/sq. meter and provincial USD 25/sq. meter. Average factory rental rate USD 1.80/sq. meter. Demand for labor intensive industrial a little bit slow down due to increase in wage cost.

26 Property Outlook for 2016 Real estate market will continue it track from last year, as the political situation is good and economic continue grow average 7% annually. The demand for real estate from oversea investors continue strong as neighboring countries market are tight. Foreign direct investment remain strong which is attracting by Foreign developers to their project (GRR on the condo investment). Asian Economic Community 2015 will bring new expatriates and investors more to Cambodia.

27 Foreign Ownership of Properties in Cambodia 23 rd VPC Regional Conference October 30 th -n November 1 st, 2015 Shangri-La Hotel, Jakarta, Indonesia.

28 Condominium Foreign Investors can own condominiums from 1 st floor up to 70% of total ownership of the whole building Freehold with no time limit Options to re-sell without restriction Most of developers guarantee on Rental Return from 6%-8% Return on investment average 10-20% per annum. No citizenship required

29 Special Economic Zone Foreign Investors can own land in SEZ Freehold, title deed renewal every 50 years No restriction for re-sell and can convert to freehold if sold to Cambodians. Eligible to get QIP (Qualified Investment Project) to get tax holiday, and exemption. One stop administrative service Required to set up a company (easy & quick process)

30 Land and other properties Leasehold with unlimited duration No restriction for re-sell and can convert to freehold if sold to Cambodian. High return on investment Easy procedure and security Flexible ways to own land under company ownership

31 CPL s Recommended Foreign Investments: - Agricultural Land - Condominium - Office Building 23 rd VPC Regional Conference October 30 th -n November 1 st, 2015 Shangri-La Hotel, Jakarta, Indonesia.

32 10 Reasons to Invest in Cambodia 1. Political Stability 2. Macroeconomic Stability 3. Pro-business Government 4. Competitive Investment Incentives 5. One-Stop Service Investment Promotion Agency 6. Access to World Market 7. Investment Protection 8. Efficient Infrastructure and Strategic Location 9. Sound Financial Sector 10. Abundant Resources, Labor, Land

33 Old Jetty 33

34 Access to Border Crossings To Thailand NR-48, NR-57, NR- 62, NR-64, NR *: New Route No. Pailin Koh Kong 6 8 Samraon g Seri Saophoan Battamban g Sihanoukville Siem Reap Pursat 4 Kampong Chhnang Kampong Speu Kampot Kap * Kampong Thom Tbaeng Mean chey PP Stueng Traeng Kampong Cham Ta Prey KhmauVeng Take o Kracheh Svay Rien g Ban Lung Saen Monourom 7 4 To Viet Nam NR-21,NR-33,NR-72, NR-74,NR-78 1 Digit Road 2 Digit Road Access to Bordering Countries 7 8

35 Cambodia s Advantages 1-Cambodia is rich of fertile soil and good weather condition. 2-No such a big natural disasters like earth quake, Volcano, Tsunami, Tornado 3-Cambodia has a strategic location as the logistic hub for ASEAN. 4-We got the Duty Free and Quota Free (DFQF) from many countries including US Canada and EU. 35

36 Why CPL? 1. CPL has almost 20 years in real estate experience. 2. CPL has dominated the market since CPL has fidelity, sincere, and work with high morality. 4. CPL guarantees 100% of the investors money by tightening the terms of payment, as every seller knows and trusts CPL. 5. CPL s friends work very closed with government, local authorities, taxation department and export agencies. 6. CPL will help investors to own lease up to 99 years or own the land if they want to. 36

37 Thank You