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Construction of 55 homes on Golf course location (Hua Hin) |
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| Description: |
INVESTMENT PROPOSAL – MAJESTIC GOLF COURSE HUA HIN
Location
Hua Hin is Thailands oldest seaside resort dating back to before the turn of last century. The railway stopped here bringing the first tourists from Bangkok to stay at the Railway hotel (now Sofitel). Its charm was quickly noticed by the Thai Royal family and their connection with the area also dates back over 100 years. The King now resides here permanently enjoying its peace and charms.
The area has seen a recent massive increase in foreign interest in the area. Holidaymakers flood in every year in ever increasing numbers and people wishing to relocate have had their demands met by massive development of housing in and around the area.
Majestic Creek is one of the newest courses to open in the Hua Hin area, and the journey towards the course offers rural views of Thai life. Small farms producing sugar cane, pineapple, bananas & mangos line the route out to the course. The course is located due west from Hua Hin centre very close to the main highway connecting Bangkok to the south of Thailand.
Majestic offers superb golf holes in an exciting layout. An easy par four for those of us who want to take the conventional route, or if you are the adventurous golfer, then trying to cut the dog-leg corners will really test your skill. The hazards of the 1st hole will never be far away, and precedes a succession of exciting & equally demanding holes.
Mountain side location, Majestic offers natural hazards as well as the local designers own input, and will offer a round full of excitement & challenge to any golfer.
The club house offers all the facilities that one could wish for, and a personal escort is even at hand to take you to the first hole for tee off.
We are proud to be the owners of a large area of land (163 rai 260,800 square m)which enjoys a mountain side location and offers stunning views over the area and fresh breezes. The land is bordered by greens and fairways .
The desirability of a home on the golf course has increased several fold over recent years but many European locations offering this level of residence have priced themselves out of the market. Golf course living in Thailand is becoming more and more popular but most importantly remains affordable to the vast majority of home buyers.
Investor
We are delighted to be able to offer a 50% participation in the purchase of the land and construction of an upmarket eco friendly housing development on the land.
Land
25 rai (40,000 sqm) 1 rai =1600 sqm
Total land cost
25,000,000 baht. This will include all incidentals and legal costs and expenses. The initial investment will be the full 25,000,000 baht.
Infrastructure
The land at present has no infrastructure, drainage, roads or services. There are however existing roads which border the land. Provision of full infrastructure is necessary to develop the land. This will include surveying and splitting, electricity and city water, telephone and internet services , roads, drainage and all necessary piping, wiring and street lighting. The cost to provide full infrastructure is calculated at 750,000 baht per rai, a total cost of 18,750,000 baht.
The area of land that will be devoted to infrastructure is 25% of the total land area or 6.25 rai (10,000 sqm). This leaves 18.75 rai (30,000 sq m) land area for development.
Land plots
After infrastructure the remaining land are that can be devoted to project development will be 18.75 rai (30,000 sqm). It is proposed that land plots are created with a minimum size of 400 sq m and a maximum size of 700 sqm the average plot being 500 sq m. The total number of plots that will be created are as follows :
15 plots of 400 sq m = 6,000 sq m
20 plots of 500 sq m = 10,000 sq m
20 plots of 700 sq m = 14,000 sq m
Land plots will be sold at 5000 baht per sq m producing 150,000,000 baht. The cost of sale of each plot is 25% of the selling price to include all our marketing, legal and other costs and amounts to 37,500,000 baht.
Land summary
Total acquisition costs 43,750,000 baht
Plot sales revenue (55 plots) 150,000,000 baht
Sales and Marketing 37,500,000 baht
Net revenue on land 68,750,000 baht
Properties
We will construct 55 properties on the available plots. The sales period to conclude all sales will be 2 years.
We do not know what size or design of house a buyer will build on a particular plot or the time scale for construction. Therefore it becomes difficult to provide specific information and figures.
The impact on the overall building cost of a house alters with time. If a buyer decides to purchase a plot now and build now we can estimate a net profit of between 200,000 baht and 500,000 baht on the build dependant on property size. However if the buyer buys later and builds later (perhaps in a years time) the construction costs will have risen by 10%, the consulting costs on the property also will have risen together reducing profit accordingly.
As a crude example the cost to a client for an average size and price house to be built on the golf course is 3,800,000 baht. Marketing costs are 25% and the actual build cost is 2,350,000 baht. Should however the client build later then the build cost will rise by 10% to 2,585,000 baht. We would also add an error margin to each property built of 35,000 baht per house. In this example net profit would be 465,000 baht if built immediately or 230,000 baht if built a year later.
Profit on extras will go to the builder on the project.
The estimated net profit on properties on the entire development will be between 12,650,000 baht (1) and 25,575,000 baht (2).
Land and house summary
Net revenue on land 68,750,000 baht
Minimum net revenue on house (1) 12,650,000 baht
Total net revenue 81,400,000 baht
Net revenue on land 68,750,000 baht
Maximum net revenue on house (2) 25,575,000 baht
Total net revenue 94,325,000 baht
ROI (return on investment)
It is proposed that capital invested will be returned to the investor in stages and in two ways :
1. As land plots are sold, and
2. As properties are sold.
Payment to investor can be directed to the investors nominated accounts anywhere Worldwide and paid in any currency.
Land plot (55 total) sales :
Land is purchased at a cost of 1,000,000 baht per rai or 625 baht per sq m. The selling price is 5000 baht per sq m. An area of 25% is devoted to infrastructure and marketing costs are 25% effectively reducing the selling price to a “real figure” of 2,500 baht per sq m. To allow a margin for budget changes and adjustments we would retain 20%. However this may or may not be needed depending on many factors. The “real” selling price then becomes 2000 baht per sq m. Revenue for the investor will be repaid as each plot is sold.
Property sales :
Similarly revenue on property sales will be repaid as each property is completed. As illustrated above revenue on each property will range from 230,000 baht to 465,000 baht per completed house.
Conclusion
We have vast experience of project development in Thailand. We have experience in the acquisition of prime land highly suited for development and a proven formula for house building and consulting, the legalities of land splitting and provision of infrastructure.
The main thrust of our strategy is a strong marketing force. This is to ensure that sales of land take place quickly from where it can be seen in this proposal the main net profit emerges.
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| Reference: |
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IP0002 |
| Price: |
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25,000,000 |
| Type: |
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Investment Proposals |
| Status: |
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Available |
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