“Development-oriented real estate trust” means the client (landowner and/or construction company) transfer real estate to trustee (GCIT) as trust asset when trust agreement be signed by the client and the trustee. Real estate owner transfer ownership to trustee for managing asset efficiently and get income from it. GCIT as a trustee has an obligation to manage, develop or construct trust asset to achieve the purpose of the trust for beneficiary’s benefit. Trustee will transfer property and income to beneficiary at maturity. GCIT’s real estate trust can divide into four parts according to trust purpose:

  • Development-oriented real estate trust
  • Management-oriented real estate trust (holding real estate on behalf of foreigners)
  • Disposal-oriented real estate trust
  • Real estate values trust etc.

3 steps to establish “Development-oriented real estate trust” easily. Firstly, real estate owner (the Client) should sign trust agreement with GCIT (trustee). Secondly, trustor transfer real estate (include land, crops and fixtures) and/or development funds to GCIT. Finally, GCIT will manage trust asset (real estate and the funds) to accomplish trust purpose of real estate development. GCIT improve the security of real estate through trust.

“Development-oriented real estate trust” is based on trust agreement and follow the progress of construction project to pay from trust account (which account that deposit buyer’s house purchase funds). After the progress of construction project be completed, GCIT will sell real estate for the price that landowner or developer had made an appointment. Then all of income will be deposited into trust account. Beneficiary (landowner or developer) will receive trust income at maturity of trust period and real estate ownership will be transferred to buyer.
Development-oriented real estate trust helps to enhance participants’ (co-construction landowners, developers and buyers) rights in development project efficiently. To summary:

  • Through our professional management, the real estate development efficiency and the security of property will be improved.
  • The project funds will be deposited into a specific account in case of misappropriation of funds and make sure development process working perfectly. GCIT helps to protect the buyer’s right.
  • Increasing reliability from banks and investment institutions, it would also benefit to fundraising.
  • Transfer both real estate (land and constructions) and development funds to do trust has property safeguard function. Trust asset (land and funds) will be protected by trust law.
  • Professional team supervises quality and progress of construction, trust helps to ensure construction be completed and increasing buyer’s willing and confidence in construction.
  • Helping developers to attract private funds and develop together.

While real estate market in Phnom Penh is booming, risks and disputes of development have increased. GCIT’s development-oriented real estate trust is the best choice for landowners and consumers who are worry about developers can not complete construction and developers who want to increase confidence on co-landowners of construction and buyers.