Seed Capital Investment with UK based developer
Thailand 6* Project
Aug 4th, 2008
Our regular property investment sent out only to our exclusive investors list!
Guaranteed 30% in 12 months
Investment from £25k - £5m
The project
A Master Plan has been drawn up for a high quality residential and hotel resort, including a luxury 6 star hotel, spa facilities, luxury villas in Pattaya, Thailand. There will also be an International School. The site has had the full master planning designed by internationally acclaimed WOHA architects.
Thailand is a major tourist destination, with the central government and the local authority strongly supporting tourist development, both by granting permission for high quality tourist facilities and by improving the local infrastructure for visitors. Tourism attracts 5.4 million visitors to Pattaya annually; and there is also a growing domestic tourist industry. Since Pattaya is1.5 hours drive from Bangkok, the capital of Thailand, it is ideally placed for both wealthy Thais, and for international visitors. Pattaya became famous for its naval port that stationed the US fleet during the Vietnam and World War II; and it has subsequently become Thailand's second most important economic city after Bangkok. Situated on the Gulf of Thailand coast, it has fine sandy beaches and luxury hotels.
The developer
The developer is Green Heritage Group, a UK owned developer with vast experience in delivering luxury developments across the world including past developments in Thailand. The project will be developed by Green Heritage Group, a UK owned developer with vast experience in luxury developments in Thailand. In March 2008, Formula One World Champion Kimi Raikkonen invested in a development from the Green Heritage Group.
Property value
CBRE Richard Ellis has valued the site at US$40.6m (based on current exchange rates). However the current purchase price is US$18 million. Thus there is ample equity in the site to provide the stated returns to investors.
Planning
The project is at an advanced stage in the planning process, with the site already zoned for residential/hospitality use and with detailed approval a question of compliance with regulations, the Thai planning process is far easier than in the UK (for example). Thus the risks associated with planning are small.
The Business Case - Expected returns
30% premium by 31.07.09 - Legally contracted option at any time up to 31 July 2009 to buy out the Company's Right to the Property for the amount that the Company paid plus 30%.
Further premium up to 31.12.09
Another Option at any time up to 31 December 2009 to buy out the Company's Right to the Property for the amount that the Company paid plus 30%, plus an additional 2% per month August-October 2009, and a further 3% per month November 2009-December 2009 - the percentages being of the amount paid by the Company. This amounts to an additional 12% premium.
FAQ
1) Who are the Developers? Green Heritage Group.
2) Where are they based? Green heritage is a company based in Thailand with British directors, it now comes under the Global Group who are a UK company.
3) Have they experience in Thailand? Yes, they have been active for many years. They have worked with Four Seasons, Park Hyatt, Mandarin Oriental and Raimon Land who are Thailand's largest development group.
4) Have they built anywhere else? Yes, in Barbados, Thailand, Morocco, Europe.
5) What is the Thailand development? A luxury 6 star hotel and villa complex and an International School
6) What value is the land? Currently approx $42 million (based on current exchange rate).
7) What are they paying for land? $18 million.
8) Why is it so cheap? The developer has been working with sellers since May 2006 when a price was agreed.
9) Does it have planning permission now? Yes, the land has outline planning permission for residencies and will now be changed for a mix of hotel and residencies.
10) How does it get full planning permission? The local planning department has outlined the criteria required for a successful application.
11) Are there planning risks? No, not if the plans stay within the guidelines. Thailand has a different planning process than Europe and planning is automatically accepted once you stay within guidelines.
12) Who are the architects? World-renowned WOHA.
13) How long is the investment for? A minimum of 12 months.
14) How much will I earn? Guaranteed 30% for 12 months.
15) Can it go on longer than 12 months? There are penalties against the developer if it extends for more than 12 months.
16) Will I earn more if the developer goes beyond the term? Yes, you will receive bonus payments of 2% per month for the first 3 months of overrun and 3% per month for the following 2 months.
17) What is the maximum I can earn? 42%.
18) What is the minimum term and return? 12 months earns 30%.
19) What is the maximum term and return? 17 months and 42%.
20) How can they afford to pay such high returns? They have bought the land at just over 40% of its 'today' value so the returns to investors still leaves them with plenty of profit.
21) How will the developer be able to repay my returns in 12 months? They will refinance the land with a local bank or fund that will repay you your capital and returns.
22) Is my money secure? Yes. All the investors form a company that takes control of the land title. This is like a mortgage that your bank has on your personal home.
23) Can I lose my money? No, your money is held in a Nat West Escrow account until the developer's solicitor has the title deeds for the land. Once the solicitor confirms the Investors have security the money is transferred direct to the landowners.
24) What are the risks? The planning process is delayed so the refinance is delayed. The credit crunch may also decrease financing options. We do however have the support of many local banks and funds who will refinance the land at full planning.
25) What would happen if the developer could not get full planning? The architects have the full support of the local government so this is highly unlikely. If it became an insurmountable problem the developer would sell the land and repay the investors their capital and profit. He would keep any leftover profit.
26) How much can I invest? The minimum is £25,000. We see investments from £25,000-£500,000.
27) Where do I send the investment funds? You will need to CHAPS your investment to LIVE OVERSEAS Nat West Escrow Account- please contact us for account details
28) Do I need to fill in any documentation? Yes you need to sign the Property Purchase Contract and return it to your nominated adviser.
29) What happens after reservation? You will also need to sign the Nat West trust account documents and return with a certified ID to Live Overseas.
30) Where can I get my ID certified? Any person of standing in the community can certify your passport or driving licence. This could be your IFA, Bank manager, policeman, doctor or dentist.
31) Can I refer friends? Yes, this is an open investment opportunity. We offer a £500 referral fee to existing clients after successful receipt of funds from your referral.
32) Do I have to pay tax on the returns? You will pay Capital Gains Tax at 18% after your allowance of £9,600 is used up. Your spouse can also use their allowance.
33) Can I keep the returns off shore? Yes.
34) How do I get my returns in 12 months time? Your returns are paid to you via bank transfer to an account of your choice.
Full details can be sent on request