Investing in land in the downtown or in the provinces is profitable, expert says

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By: Raneth

Phnom Penh: The choice of buying real estate as well as land in high-profit areas remains a popular and curious topic From those who are involved in this field as well.

Mr. Long Kimsuor, vice president of the Cambodia Valuers and Estate Agents Association and CEO of Century21 Advance Property, said by telephone this week that whether buying in downtown or in the provinces far from the city, the profit margin still remains if the buyer is smart and studies the detail in the areas and related development projects.

“I’m only talking about the land, there are buyers for investment to continue to make a profit, have chosen different locations with the expectation of being able to get profit on resale. No matter where they buy, the profit margins arestill out there, as long as they buy with consideration and judge correctly,” he said.

Mr. Kimsuor continued that some of them did not know the details of the information and development projects that stimulate the market demand and buy by surprise, buut can also get the same profit as this profit, it is a coincidence for them. In such cases, it is not always acceptable.

Mr. Kimsuor said that some people have little resources, but they decided to buy land in downtown, especially nearby active development projects, so their percentage of profit is high and fast. If they decide to sell at a bargain price and invest in another area with a clear development plan, growth of their dividends will increase more than those who have a lot of money who buy large plots of land, but in areas far from the city and do not have development projects.

He confirmed that whether in the downtown or in any province, the percentage of profit remains the same, it is important that before investing, you must study the market needs and development projects in detail so that the investment does not fail.

Exclusive: US tells European companies they face sanctions risk on Nord Stream 2 pipeline

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The U.S. State Department this month told European companies which it suspects are helping to build Russia’s Nord Stream 2 gas pipeline that they face the risk of sanctions as the outgoing Trump administration prepares a final round of punitive measures against the project, two sources said on Tuesday.
WASHINGTON: The U.S. State Department this month told European companies which it suspects are helping to build Russia’s Nord Stream 2 gas pipeline that they face the risk of sanctions as the outgoing Trump administration prepares a final round of punitive measures against the project, two sources said on Tuesday.
“We are trying to inform companies of the risk and urge them to pull out before it’s too late,” a U.S. government source said on condition of anonymity.
The U.S. source said the State Department is expected to issue a report by Thursday or Friday on companies it believes are helping the Russia-to-Germany pipeline. Companies that could be in the report include ones providing insurance, helping to lay the undersea pipeline, or verify the project’s construction equipment, the source said.
The companies could be at risk of U.S. sanctions under existing law if they do not stop work.
Zurich Insurance Group could be listed in the report, the source said. The company did not immediately respond to a request for comment.
The US$11 billion pipeline, one of Russia’s most important projects in Europe, has sparked tensions between Washington and Moscow.
The Trump administration opposes Nord Stream 2, which would deprive Ukraine of lucrative transit fees, saying it would increase Russia’s economic and political leverage over Europe. The administration has also pushed exports of U.S. liquefied natural gas to Europe, a fuel that competes with pipelined gas from Russia.
The Kremlin says Nord Stream 2, led by state energy company Gazprom, is a commercial project.
Germany, Europe’s biggest economy, also says the pipeline is simply commercial. It needs gas as it shuts coal and nuclear plants on environmental and safety concerns.
U.S. President-elect Joe Biden opposed the project when he was vice president under Barack Obama. It is uncertain whether he would be willing to compromise on the project after Jan. 20 when he takes over.
Gazprom halted Nord Stream 2 construction for a year after U.S. sanctions in December 2019. But work has resumed as Gazprom hopes to complete the Nord Stream 2 pipeline under the Baltic Sea to double the existing line’s capacity. The project is 90per cent completed with only a 62-mile (100-km) stretch in deep waters off Denmark left to complete.
A U.S. based industry source who has seen the State Department communications said European companies, including German ones, received the inquiries from the Trump administration over the past several months, dating back to October, about their activities relating to Nord Stream 2.
The State Department asked the companies in October if they were involved with Nord Stream 2 and whether any work continued after July 15, and the value of any services or support.
On that date, U.S. Secretary of State Mike Pompeo warned investors in Russia’s Nord Stream 2 and Turkstream pipelines they could face sanctions under the Countering America’s Adversaries Through Sanctions Act of 2017.
On Jan. 1, the State Department reached out again with an urgent request, the industry source said, asking to set up a call that weekend with Deputy Assistant Secretary of the Bureau of Energy Resources, Melissa Simpson, to discuss the details of the companies’ wind down activities.
The State Department did not immediately respond to a request for comment. CNA
Source: Reuters

Deutsche Bank won’t do any more business with Trump

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London (CNN Business)Deutsche Bank will no longer do business with President Donald Trump, a move that will cut off his business from a major source of loans that once helped fund his golf courses and hotels.
Germany’s biggest bank has decided to refrain from future business with the president and his company, a person familiar with the bank’s thinking told CNN Business. The news, first reported by the New York Times, follows last week’s deadly riot at the US Capitol.
A spokesperson for Deutsche Bank (DB) declined to comment to CNN Business, citing a prohibition on discussing potential client relationships.
The move is the latest example of corporate backlash against the president after his supporters vandalized the Capitol in a brazen assault that left five people dead.
On Monday, Signature Bank said it had started closing Trump’s personal accounts and called for the president to resign. The US bank also said it “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”
Trump has a checking account at Signature Bank, according to a 2019 financial disclosure filed with the US Office of Government Ethics. A revocable trust in the president’s name also has a money market account at Signature Bank, according to the filing.
Trump also has ties to other major banks. The president held between $5 million and $25 million in checking-and-savings accounts at Capital One (COF) and between $500,000 and $1 million in accounts at JPMorgan Chase (JPM), according to the disclosure form.
Trump also listed up to $250,000 in a money market account at Bank United.
JPMorgan declined to comment. A Capital One spokesperson said the bank does not discuss current or former customer relationships. Bank United did not respond to a request for comment.
Trump’s disclosure forms indicated he held up to $50,000 in a First Republic (FRC) checking account. However, a spokesman for First Republic told CNN Business that single Trump account was inactive and is now closed. The bank declined to say when the account was closed.
The loss of future business with Deutsche Bank is potentially a much bigger blow. The Trump Organization owes Deutsche Bank approximately $340 million in the coming years, the person familiar with the bank’s thinking said.
There was no request from Trump for Deutsche Bank to lend more money, the person said.
Lending by Deutsche Bank to Trump and his companies totals more than $2.5 billion, the New York Times reported in 2019.
Trump has several outstanding loans with Deutsche Bank, according to the president’s financial disclosure documents. The president has borrowed tens of millions of dollars for Trump National Doral, his golf resort in south Florida. Deutsche Bank has also provided loans for the Trump International Hotel and Tower in Chicago and the Trump International Hotel in Washington, which opened in 2016.
It’s not clear how Deutsche Bank will handle the loans once Trump has left the White House, especially with the hotel and hospitality business in steep decline due to the pandemic. The loans mature in 2023 and 2024.
Late last month, the two private bankers at Deutsche who worked most closely with Trump resigned their positions.
Christiana Riley, Deutsche Bank’s top executive in the Americas, condemned the violence at the Capitol in a post last week on LinkedIn.
“Violence has no place in our society and the scenes that we witnessed are a shame on the whole nation,” she wrote. “We are proud of our Constitution and stand by those who seek to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place.”
The Trump Organization is under investigation by the Manhattan District Attorney’s office and New York Attorney General and both agencies have subpoenaed the bank about its lending relationship with the company.
Investigators are looking into whether the Trump Organization misled or defrauded the lender by inflating the value of some of its assets, according to court filings. (So

The apartment market is starting to show good signs again in early 2021

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By: Ranet

Phnom Penh: Similar to other sectors in Cambodia, the real estate sector which was severely affected by the global economic crisis, and for the apartment market is also affected, but the situation may start to grow in 2021.

Mr. Vorn Chanthorn, CEO of Town City Real Estate Agency, said in the morning of January 12, 2021 that the apartment market, which had declined in mid-2020, had gradually started to recover as rental prices saw also an increase.

“During the pandemic, the apartment market was not so different from other sectors,” he said. “Most apartment rentals are long-term leases, but the important thing is that most of tenants are more foreigners than locals. The rental rate may be higher, but the price is lower because the apartment owner has helped facilitate the reduction of prices by between 20-30 percent to its customers who are locals or foreigners in local, as new foreign customers have not yet returned to Cambodia.”

“Especially for the beginning of 2021, while the situation in Cambodia is improving, people are starting to go out to do business and resume work, this market demand is gradually starting to change for the better,” he said. “And prices have also risen. I think soon the apartment market will improve as some countries start vaccination, especially China, where many people come to live and work in Cambodia, most of them live in apartments.”

CBRE Cambodia Country Director Mrs. Ann Sothida said that in 2021, the real estate sector will start to grow again, but not yet strong, which will take at least another six months.

“The apartment market has also been severely affected by the pandemic because most customers are more foreigners than Cambodians in the country,” she said.
She stated that now for those who come to live in apartments are mostly Cambodians, because foreign customers have not returned, for each country has not yet opened the border. This market will be able to recover at least by the middle of 2021 after the use of effective and universal vaccines that can prevent the spread of the pandemic 100 percent, and investors as well as foreign experts will return to do business or work In Cambodia.

Hang Seng Index advances to 11-month high after mainland funds invade market with record US$2.5 billion of purchases

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Hong Kong stocks rose, lifting the market to the highest level in 11 months, on optimism mainland China funds will support local equities whipsawed by US sanctions.
The Hang Seng Index added 0.5 per cent to 28,037.51 at the break on Tuesday, heading for the highest close since January 22 last year. That puts the market within 1.1 per cent of erasing all the losses since China locked down Wuhan, the epicentre of Covid-19 outbreak, about a year ago.
The Shanghai Composite Index rose 0.8 per cent. It slumped 1.1 per cent in its biggest pullback in three weeks on Monday.
Mainland traders continued to pile into Hong Kong stocks after they bought a record HK$19.5 billion (US$2.5 billion) of the shares via the cross-border Stock Connect programme on Monday. They poured in another HK$5.5 billion so far on Tuesday, according to Bloomberg data.
China Mobile, China Unicom and China Telecom advanced by at least 4 per cent, extending gains on Monday on speculation mainland traders were buying the dip after a sell-off last week. The trio are now off-limits to US investors starting this week, banned under President Donald Trump’s November 12 executive order. Source: South China Morning Post

2021 is a good time for investment and development in real estate, experts say

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By: Ranet
Phnom Penh: After being severely affected by the global economic crisis caused by the pandemic in 2020, for 2021, real estate experts claim that it is a good time for those who have enough money to invest, as well as develop their project.
The President of Cambodia Valuers and Estate Agents, Mr. Chrek Soknim, said this weekend that 2021 is the most suitable time for those who have enough capital and cash flow to invest or start developing projects to enter the market during the end of 2021 or the beginning of 2022, after the end of the crisis and the global vaccination starts.
“Now, in some major countries, the vaccine is gradually being used and will continue to be distributed to other countries, of which Cambodia is also prepared to use the vaccine in the country,” he said. “So with the universal and highly effective vaccines, the economic cycle will resume and the real estate market will return to normal.”
Mr. Soknim said that on this occasion, for those who have enough money, they should buy land or houses for sale or rent for profit and the price starts to go up next year or later year. Especially for those who have a package of money should buy a condo project that is affordable and in a good location, because the condo offers the opportunity to pay in installments for a long time and after the end of the project can be resold at a high price or can be rented at a high price. But before buying, be sure to buy from a reputable project developer, avoid buying a project that does not run smoothly, which can cause losses.
Mr. Sorn Seap, CEO of Key Real Estate, said that in 2021, provinces with potential to buy land, invest or develop other projects should look at two coastal provinces, Kampot and Kep with tourism potential.
“Kep and Kampot provinces have become popular tourist destinations for local tourists, especially after the completion of National Road 3, which will further encourage tourists to travel to these two coastal provinces,” he said.
He said that for investment in the land sector in these two provinces, there is still a chance to make a profit because the scope of vacant land is still large and the price is not very high, so there are still investment opportunities, especially land located near the mountains, next to the creek, which is suitable for development as a recreation area or leisure home. However, the purchase of land is not very profitable, until the purchase for development projects into other tourist areas can have good potential.

Goldman, Morgan Stanley to delist some Hong Kong products after US investment ban

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HONG KONG: Goldman Sachs, Morgan Stanley and JPMorgan units will delist a total of 500 Hong Kong-listed structured products, Hong Kong stock exchange filings on Sunday (Jan 10) showed.
The delistings are because of statements last week by the US Office of Foreign Assets Control clarifying a November order from President Donald Trump that banned Americans from investing in Chinese companies that the US deems to have links with China’s military, the filings said.
Bourse operator Hong Kong Exchanges and Clearing said in a statement it was “working closely with the relevant issuers to ensure orderly delisting, and facilitate buyback arrangements being arranged by the issuers”. CNA
Source: Reuters/dv

International Real Estate Companies from the US Still Looking for Profitable Investment real estate Opportunities in Cambodia

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By: Ranet

Phnom Penh: Although Cambodia has been under pressure from the global crisis, well-known international real estate companies from the United States are still looking for good opportunities for investment in Cambodia that can bring more benefits than other countries in the region.

Grace Rachny Fong, executive director of Century 21 Cambodia, said on January 6, 2021 that despite the current situation, the Cambodian real estate market continues to provide the opportunities for investment and development. Over the real estate market located in neighboring countries located in the region.

“Century21 Cambodia has been established in Cambodia for seven years, after being successfully established 50 years ago in the United States and expanding to 84 countries. 75th member. She added.

“Experience in the real estate sector as a professional company has seen that the real estate sector in Cambodia, whether now or in the next 7-10 years, Cambodia still provides a profitable opportunity to invest in the real estate market,” she said. That is developing and growing.

During 2013, the real estate sector in Cambodia, especially large-scale construction projects worth tens of millions of dollars, was still limited, but since 2018-2019, the momentum of investment and development on large projects has increased. Up sharply and remarkably. With the momentum of this growth, the family of Century21 Cambodia International Real Estate has expanded from one office to 86, with 200 to 700 full-fledged agents throughout Cambodia, and will continue to expand and expand to 3,800 to provide quality, safe and profitable services to its customers.

Ms. Grace Rachny Fong stated that for investment opportunities, there are still many opportunities from today to the future. For example, land prices in the Toul Kork area are in the range of $ 3,200-3,500 per square meter, while during 2016-2017 it was only $ 2,000 and in the next five years it will be able to evolve. Reaching a price similar to the current land in Boeung Keng 1, which is between $ 6,500-7,000 per square meter. Therefore, for those who invest in the present and expect for the future, there is still a high chance of profit.

Shareholders approve Fiat Chrysler-PSA merger, creating fourth largest automaker

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(CNN)Fiat Chrysler Automobiles and Groupe PSA, the French maker of Peugeot and Citroën cars, expect their merger to be complete on January 16th, the companies announced Monday. The newly combined company will be called Stellantis.
Shareholders of both companies overwhelmingly approved the merger on Monday, the automakers said.
Fiat Chrysler (FCAU) produces the Chrysler, Dodge, Ram, Jeep, Fiat, Alfa Romeo, Maserati and Lancia auto brands. PSA, meanwhile, makes Peugeot, Citroën, DS, Opel and Vauxhall cars.
Upon completion of the merger, the combined company will become the world’s fourth largest automaker, said Jeff Schuster, an analyst with LMC Automotive. Together, the companies are worth an estimated $57 billion.
In 2019, the two companies sold a combined 8 million vehicles, that’s about 3 million fewer vehicles than Volkswagen (VLKPF) Group.
While Fiat Chrysler and PSA compete in Europe, PSA has virtually no presence in the US, where Fiat Chrysler is the fourth largest automaker in terms of sales in the country.
But Western Europe is already a highly competitive car market with an overabundance of car brands, said Bill Visnic, editorial director for the Society of Automotive Engineers. The last thing Stellantis will want is to have its own brands competing against each other.
“In 10 years or five years from now, even, I think it’s highly unlikely that that all these brands will remain,” he said.
Stellantis may have a difficult time justifying the existence of a brand like Alfa Romeo, for instance, which doesn’t sell in large numbers and has an unclear brand image among consumers, he said. It will also be challenging to have so many brands, like Opel, Fiat, Peugeot and Citroën, vying for mass market customers looking for basic transportation.
That’s less of a problem in the US. PSA doesn’t currently sell any car brands in the US. As it is, some of Fiat Chryler’s US-focused brands have little variety to offer customers. Chrysler, for example, currently sells only the 300, a large sedan, and the Pacifica and Voyager minivans.
Thin lineups like this are sustainable given Fiat Chrysler’s sales strategy, said George Karolis, president of the Presidio Group, an investment bank that works primarily with auto dealers. Almost all Fiat Chrysler dealers in the US sell all or most of the company’s brands so it’s fine if Chrysler mostly sells minivans. Customers who want an SUV can buy a Dodge or a Jeep.
And, in Jeep, Fiat Chrysler has one of the strongest automotive brands there is, one that will be a pillar for Stellantis in the US and around world.
“Jeep is a very strong core brand and a very popular product for sure,” said Karolis.
Both Fiat Chrysler and PSA have struggled to compete in the rapidly growing auto market in China, said Schuster. The merger will not immediately help with that, he said, so that would remain a challenge.
But the creation of the new company will help free up resources as Stellantis shifts toward electric and autonomous vehicle technologies, said Michelle Krebs, an analyst with Cox Automotive.
“The creation of Stellantis is simply a large-scale example of an underlying trend we’re seeing in the automobile business right now, as all serious automakers face the monumental task of reshaping their operations with an eye toward 2030, when EVs and autonomous technology will have shifted from emerging to mainstream,” she said.
This is one area where the two companies could help one another, said Schuster.
“I think there’s an [electric vehicle] expertise PSA has that FCA doesn’t,” he said. “So there’s some nice synergy there.”
Shares of Stellantis will begin trading on stock markets in Paris and Milan on Monday, January 18, and on the New York Stock Exchange the following day.
The merger requires some final regulatory approvals, the companies said, including those of the European Union and European Central Bank. Source: CNN

Cambodia’s real estate market may recover slightly in second half of 2021

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By: Ranet
Phnom Penh: After the threat of the pandemic in the community under the effective management and prevention of the Royal Government of Cambodia since the beginning of 2021, real estate sales may resume some activity and continue until the second half of the same year may see a slight regrowth.
Mr. Chrek Soknim, President of the Cambodia Valuers and Estate Agents Association, said on the evening of January 4, 2021 that, after the end of the event on November 28 recently, for those involved in the real estate sector began to be active and re-promote their projects, including project holders, investors, as well as clients who wish to purchase property for specific needs.
“Some people are starting to do their business, including sales agents, investors, as well as clients looking for real estate to meet real needs,” he said. “These activities are just the beginning, but it is not yet possible to say that market activity is getting busy or re-emerging,” he added.
“I think it will take more time; if the epidemic is not as manageable as it used to be, and if we get the vaccine to Cambodia already, I believe by mid-year or During the second half of 2021, the real estate market will start to grow again, but not yet strong.”
Similarly, CBRE Cambodia Country Director Ann Sothida said, “Most of the real estate activity, which is aimed at the mid-range housing market and the land market for less than $1 million, is based on real demand only for Cambodian customers or local investors.”
“Most of the market that continues to be active today is the sale of affordable ground floor homes under $70,000 or less, along with small-scale land sales,” she said. “For the sale of expensive real estate or land, unless it is sold at a lower price than the market, which can provide more profit opportunities after the end of the global crisis,” she added.
She stated that although the situation of the pandemic in Cambodia has been under the control by the Royal Government with good results, but for the real estate market, especially large-scale construction projects worth millions of dollars, most Investment are from international companies and foreigners from abroad. So, although in Cambodia it is better to get out of this crisis, in some other countries it is still not over.
“Even though some countries have started using the vaccine, it will take time for them as investors to re-prepare to make the emergency start of the crisis,” she said. This is a global crisis. Once they are ready, it will take some time, so whether you like it or not, it will take at least a year.”