Investment in a Resort/Apartment Complex with Good Returns

Condo resort currently in early stages of development looking for corporate investors to purchase multiple rooms. Management will be controlled by an on site team.

The following proposal provides an exciting investment opportunity for either a sophisticated property investor seeking to diversify his current portfolio into the emerging economies of Asia through exposure to Thailand, or an investor with prior knowledge of Thailand, and the risks and benefits associated with this exciting economy.

Thailand is South East Asia’s 2nd largest economy, with GDP at around 6.5%, inflation around 3%, and a growing population of approximately 70 million. The local currency is the Thai Baht and it is currently at a very favourable rate for foreign investors. The economy is export dependent and therefore runs at a substantial current account surplus thanks to its large manufacturing and service sectors.

P. Developments is a construction and resort management company operating on the National Park island of Koh Samet in Thailand's Eastern Seaboard. The company was founded in 2012 and is the only property developer on the island. We have one completed project called P. Resort, consisting of 24 self contained units. This project is run as a resort style apartment.

Koh Samet is a small tropical island approximately 220km south of Bangkok, its close proximity to the capital means it benefits from high visitor numbers all year round.

We have numerous ongoing projects, currently in construction is a 31 unit development called P.2, it is 87% sold and scheduled to be completed on 1st December 2014. We have 2 projects in the planning phase, including P. 3, which will consist of 99 studio style apartment units.

Investment Proposal
We are seeking an investment of £1, 450, 000 in return for 65 studio units in P. 3. That equates to a price of approximately £22 300 per unit. These properties are already selling direct to customers at £27 800 per unit, so an investment would already represent a saving of £357 500 when compared to the direct retail price.

The reason we are seeking the investment is to secure finances well in advance of construction, enabling us to allocate our resources more efficiently. To reassure the investor, the investment will be split into stages, with an initial investment of £335 000, followed by quarterly payments of £186, 000. The final payment will coincide with completion of the build.
Income Projection

We anticipate P. 3 will benefit from a similar return on investment to our first project, we are anticipating a first year ROI of 10%, with increases up to 20% within 5 years.
P. 1 is seeing impressive returns that will continue to increase as the resort becomes more well-established. We are on track to reward our owners with a return of over 10% for the first year, exceeding our target of 7%. As P. is a new development, it has yet to benefit fully from organic marketing to the same extent as a more well-established property.

Managing your investment
The management company will be based on site at P. 3 and is able to take care of all aspects of the management of your property, such as maintenance and utility bills. All major building issues are managed directly by P. Developments, the maintenance fee for studio units is £500 per studio per year. We would advise a potential investor to establish a Thai bank account, and we will transfer your income into the account on a monthly basis.

A more detailed analysis of the project is available for a serious investor reviewing this opportunity,

As the investment is 65 individual studio units, this allows the investor the benefits of a large investment with the flexibility of a smaller investment, for example, if you were interested in freeing up capital, we are able to sell units on your behalf. By investing at the project stage, it is likely that the units will have increased substantially in value by the time they are completed. The island has seen massive increases in property values over the past 5 years as it has become a more well-known holiday destination

We anticipate P. 3 will benefit from a similar return on investment to our first project, we are anticipating a first year ROI of 10%, with increases up to 20% within 5 years.

P. 1 is seeing impressive returns that will continue to increase as the resort becomes more well-established. We are on track to reward our owners with a return of over 10% for the first year, exceeding our target of 7%. As P. is a new development, it has yet to benefit fully from organic marketing to the same extent as a more well-established property.
Managing your investment

The management company will be based on site at P. 3 and is able to take care of all aspects of the management of your property, such as maintenance and utility bills. All major building issues are managed directly by P. Developments, the maintenance fee for studio units is £500 per studio per year. We would advise a potential investor to establish a Thai bank account, and we will transfer your income into the account on a monthly basis.

The reason we are seeking the investment is to secure finances well in advance of construction, enabling us to allocate our resources more efficiently.

Investment Amount Prospective annual income year 1 Prospective annual income year 2 Prospective annual income year 3 Prospective annual income year 4 Prospective annual income year 5
1 450 000 145 000 171 000 205 000 253 000 290 000

Annual Percentage return 10% 11.8% 14.1% 17.2% 20%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Cumulative income 145 000 316 000 521 000 774 000 1 064 000 1 364 000 1 658 000

The above tables show the anticipated return on investment, we expect the investment will be recouped over a 7 year time frame.
This project will follow and build upon the same successful formula used in P.a 1 and 2, high quality Western style accommodation on a tropical island. Over these projects we have refined our techniques and research, as a result we anticipate P. 3 will be our most profitable project.