Emerging Markets

A Business Case for Commercial Real Estate Development
Asset Management Company Korea (“amco”) - the subsidiary of Hyundai Group responsible for the firm’s international construction business - needed to evaluate a range of real estate development options for a central Phnom Penh location.  After evaluating a number of firms in the region to conduct the work, amco selected EMC to conduct a pre-feasibility study and establish a business case for the project. 
 
The Study centered on determining the most profitable and viable commercial investment opportunity from among a number of investment options, including a shopping mall, residential housing, apartment buildings and a hospital. The EMC team conducted primary and secondary research and analysis in support of a preliminary market assessment for each option and, after presenting recommendations to amco management, developed detailed financial models (including pro-forma income statement, sensitivity analyses and scenarios and key financial metrics) for the prioritized selection. EMC also subcontracted architectural and legal advisors to provide input on costs, design feasibility elements and the process and constraints surrounding land use and building permits.
The results enabled amco to understand the project value to Hyundai and its partners and to choose between alternative configurations and project scales. The findings and strategic recommendations ultimately provided key input for amco’s first investment in the Kingdom of Cambodia. 
 

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Provincial Investment Profiles. EMC has been contracted by DAI to produce Investment Profiles for six Cambodian provinces for the USAID Cambodia MSME Project. This follows the success of profiles EMC produced in 2008 for six other provinces. The first six profiles can be accessed here.

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