Explainer: How ODOM’s Guaranteed Rental Return Program Works for Phnom Penh Office Investors (VIDEO)
Cambodia Investment Review
ULS Cambodia hosted a live seminar from the ODOM Sales Gallery, unpacking everything investors need to know about Guaranteed Rental Returns (GRR) and why the ODOM Tower program stands out. The session combined ULS’s perspective on structuring predictable yields with CBRE Cambodia’s independent analysis of Phnom Penh’s Grade-A office market.
What is a Guaranteed Rental Return (GRR)?
GRR is essentially a developer’s contractual promise to provide fixed rental income for a set period, regardless of occupancy. Returns are calculated as a percentage of the purchase price and work much like a fixed-term deposit. For investors, this means predictable income without the hassle of tenant management or vacancy risk.
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“An investment property should deliver what every investor wants: income and a clear exit strategy,” explained Ty Chea, Head of Sales at ULS Cambodia. “GRR is designed to reduce uncertainty and give you predictable income, especially when you’re investing in a market you don’t live in.”
But ULS stressed that a GRR is only as credible as the foundation it stands on—developer experience, the quality of the asset, and whether the guaranteed rent aligns with market demand. “We’re not fly-by-night developers. By limiting the number of units under GRR and retaining ownership ourselves, we can ensure the program is both sustainable and market-driven,” Ty added.
How ODOM’s Program is Structured
ODOM Tower, located on Norodom Boulevard, is a Grade-A, LEED Gold pre-certified development offering strata-title offices (freehold “office condos”) alongside residences, curated retail, an IHG Vignette Collection hotel, and a private members’ club.
The GRR program applies to only 25% of the tower’s office area (floors 7–14). Investors receive:
- 8% net annual return for five years, paid quarterly, with no deductions for management or operating costs.
- An optional buyback at 110% of the original purchase price at the end of year five (with six months’ notice).
- Flexibility at exit: hold for ongoing market rent, sell in the open market, or exercise the buyback.
To illustrate, a US$300,000 office purchase generates US$24,000 per year (US$6,000 per quarter). Over five years, that’s US$120,000 in net rental income. If the buyback option is taken, investors would also receive US$330,000 from ULS, bringing the total return to US$450,000.
“It’s a safety net, not a cap,” he explained. “The buyback guarantees certainty, but many investors may choose to sell in the open market if returns are higher. We’ve structured ODOM’s GRR to provide both peace of mind and flexibility.”
What the Market Says
Providing broader context, Kinkesa Kim, Managing Director of CBRE Cambodia, noted that Grade-A offices continue to outperform despite an influx of new supply in Phnom Penh. “Occupancy in the city averages around 65%, but Grade-A assets in prime CBD locations consistently perform better,” she said. “We are also seeing a clear ‘flight-to-quality’—tenants prioritising modern specifications, sustainability, and international standards.”
Kinkesaalso highlighted the growing importance of ESG credentials. “For multinational occupiers, LEED certification is no longer a nice-to-have but a prerequisite. At present, Phnom Penh has very limited LEED-certified Grade-A stock. ODOM’s combination of sustainability features, central location, and ownership model positions it strongly.”
She added a caution for developers: “Property management and long-term operations are crucial. Cutting corners on maintenance might save costs in the short term but will undermine asset value. The projects that invest in quality operations will remain competitive as supply grows.”
Why This Matters for Investors
ODOM’s GRR program was benchmarked against independent data and designed to be serviceable even if occupancy dips. By restricting GRR allocation and leveraging diversified income streams (retail, hotel, club, residential), ULS argues it can keep promises credible and returns sustainable.
For investors, the appeal lies in predictable net income, a clearly defined exit option, and ownership in a Grade-A, LEED Gold pre-certified office in Phnom Penh’s CBD.
As Ty summed up: “Our GRR is a promise—but it’s a promise backed by fundamentals, not wishful thinking. ODOM is built for Cambodia’s future, and we’re confident it will perform long after the guarantee period.”
