Investment opportunity: ZENITHY VILLA

ZENITHY VILLA

·       Location: Pasak

·       Bedroom: 3

·       Bathroom: 4

·       Build Up Area: 338 sqm

·       Land Plot: 262 sqm

·       Monthly Rent Rate: 165,000 THB

·       Annual Common Fee: 39,300 THB

·       Investment Cost: 24,300,000 THB  

CONFIDENTIAL INVESTMENT ANALYSIS REPORT

Project: Long-Term Residential Rental Investment – ZENITHY VILLA

Location: Pasak, Phuket, Thailand

Prepared For: Prospective Investors

Prepared By: ONENESS WORK CO., LTD.

Executive Summary:

This report provides a detailed analysis of an investment opportunity concerning ZENITHY VILLA, a modern residential property situated in the highly sought-after Pasak area of Phuket, Thailand. The investment proposal centres on acquiring the property for long-term rental purposes, requiring a total capital investment of 24,300,000 THB. Pasak is recognized as a prime residential enclave, attracting a significant expatriate and affluent long-term resident population. Leveraging this prime location and the property's specifications, coupled with the comprehensive management services of our designated support partner, Oneness Work Co., Ltd., this investment is projected to deliver consistent rental income and holds strong potential for capital appreciation. Our analysis indicates a projected Net Operating Income (NOI) resulting in a Capitalization Rate of approximately 5.84%, reflecting a solid return profile for a premium asset in a top-tier location. This document outlines the investment thesis, operational strategy, financial projections, and the indispensable role of Oneness Work Co., Ltd. in optimizing performance and ensuring investor peace of mind.

1. Investment Analysis:

• Property Overview: ZENITHY VILLA is a contemporary residence featuring 3 bedrooms and 4 bathrooms. It offers a substantial build-up area of 338 sqm situated on a land plot of 262 sqm. This configuration suggests a multi-level design efficiently utilizing the land footprint to maximize internal living space, typical of modern high-quality constructions in desirable areas. The provision of four bathrooms adds convenience and appeals to families or shared living arrangements at the premium level.
• Location Analysis (Pasak, Phuket): Pasak is one of Phuket's most desirable residential addresses, strategically located inland between the Bang Tao and Surin beach areas. It is renowned for its tranquil yet exceptionally convenient setting. Residents benefit from close proximity to the Laguna Phuket complex, Boat Avenue & Porto de Phuket shopping and dining hubs, Villa Market supermarket, Blue Tree Phuket leisure park, and several reputable international schools. This concentration of amenities and lifestyle facilities makes Pasak exceptionally popular among expatriate families, professionals, and affluent individuals seeking high-quality long-term accommodation. The location strongly supports the objective of attracting stable, high-calibre tenants.
• Market Context (Phuket Long-Term Rentals): The demand for premium long-term rental properties in Phuket remains robust, underpinned by the island's status as a global lifestyle destination and a hub for international business and education. Pasak, specifically, commands premium rental rates due to its reputation, safety, and unparalleled convenience. Properties like ZENITHY VILLA cater to the segment of the market seeking modern comforts, strategic location, and quality finishes, insulating the investment somewhat from the volatility associated with purely tourist-driven markets.
• Investment Rationale: This investment proposition is anchored in the acquisition of a high-quality asset in a demonstrably prime location (Pasak). The property's specifications (3 bed/4 bath, modern build) align perfectly with the requirements of the target tenant demographic. The Pasak area's historical performance suggests strong potential for long-term capital appreciation alongside steady rental income. The engagement of professional management further enhances the investment's attractiveness by mitigating operational risks.

2. Business Plan:

• Objective: To secure consistent rental income from ZENITHY VILLA at a premium market rate, maintain the asset to the highest standard to ensure value preservation and enhancement, and achieve favourable capital appreciation over the investment horizon.
• Strategy:
• Positioning: Market ZENITHY VILLA as a premium, professionally managed residence within the prestigious Pasak neighbourhood.
• Tenant Acquisition: Employ targeted marketing strategies focusing on channels frequented by potential tenants seeking long-term rentals in the Pasak/Bang Tao/Laguna area. This includes premium online real estate portals, collaborations with specialized local agents, and outreach to corporate relocation firms and nearby international schools.
• Tenant Screening: Adhere to stringent screening protocols to secure financially sound and reliable tenants, minimizing potential vacancy periods and defaults. Secure appropriate security deposits.
• Operations: Delegate all operational aspects, including rent collection, expense payment, tenant communication, and issue resolution, to Oneness Work Co., Ltd.
• Maintenance: Establish a proactive maintenance plan managed by Oneness Work Co., Ltd. to ensure the property remains in excellent condition, justifying the premium rental rate.
• Risk Management:
• Vacancy: Mitigated by the high desirability of the Pasak location, competitive positioning, and effective marketing. A vacancy factor is included in projections.
• Tenant Default: Addressed through rigorous screening and security deposit requirements.
• Maintenance Costs: Managed via a dedicated budget and proactive upkeep schedule.
• Market Fluctuation: While property values can fluctuate, Pasak's prime status offers a degree of resilience compared to less desirable areas.
• Exit Strategy: While designed as a long-term income-generating asset, the plan includes the potential for a future profitable resale. Oneness Work Co., Ltd. will provide market analysis and facilitate the sales process to maximize returns when the investor decides to exit.

3. Financial Projections:

• Total Investment Amount Required: 24,300,000 THB (Note: This figure represents the acquisition cost. Investors should account for additional closing costs such as transfer fees, taxes, and potential minor furnishing/setup expenses).
• Projected Income:
• Proposed Gross Monthly Rent: 165,000 THB
• Gross Potential Annual Rent: 165,000 THB/month * 12 months = 1,980,000 THB
• Vacancy Allowance (Estimated @ 8%): 1,980,000 THB * 8% = 158,400 THB
• Effective Gross Income (EGI): 1,980,000 THB - 158,400 THB = 1,821,600 THB
• Projected Expenses (Annual):
• Common Area Fees (Given): 39,300 THB
• Property Management Fee (Estimated @ 10% of EGI): 1,821,600 THB * 10% = 182,160 THB (Subject to final agreement with Oneness Work Co., Ltd.)
• Maintenance & Repairs Allowance (Estimated @ 5% of EGI): 1,821,600 THB * 5% = 91,080 THB
• Property Tax (Estimated): Based on official valuation, conservatively estimated at ~24,300 THB (Subject to official assessment)
• Building Insurance (Estimated): ~30,000 THB
• Contingency (Estimated @ 2% of EGI): 1,821,600 THB * 2% = 36,432 THB
• Total Estimated Annual Expenses: 39,300 + 182,160 + 91,080 + 24,300 + 30,000 + 36,432 = 403,272 THB
• Projected Net Operating Income (NOI):
• NOI = EGI - Total Expenses
• NOI = 1,821,600 THB - 403,272 THB = 1,418,328 THB
• Proposed Monthly Rental Rate Justification: The monthly rate of 165,000 THB is justified by ZENITHY VILLA's prime Pasak location, modern specifications (3 bed/4 bath, 338 sqm build), and the high demand for quality long-term rentals in this prestigious area. This rate targets affluent expatriates, families prioritizing proximity to international schools and lifestyle amenities (Laguna, Boat Avenue), demanding premium accommodation. The rate aligns with current market comparables for similar properties in Pasak.
• Break-Even Point:
• Break-Even Occupancy (to cover operating expenses): (Total Annual Expenses / Gross Potential Annual Rent) = 403,272 THB / 1,980,000 THB ≈ 20.4%. This indicates the property needs to be rented for approximately 2.45 months (or 75 days) per year to cover annual operating costs (excluding any financing costs).
• Simple Payback Period (Time to recoup investment via NOI): (Total Investment Cost / Annual NOI) = 24,300,000 THB / 1,418,328 THB ≈ 17.1 years. (This simplified metric excludes financing impacts, income taxes, transaction costs, and potential capital appreciation).
• Financial Metrics (Based on All-Cash Purchase Assumption):
• Capitalization Rate (Cap Rate): (Annual NOI / Total Investment Cost) = 1,418,328 THB / 24,300,000 THB ≈ 5.84%. This signifies the unlevered annual rate of return based on projected operations. While slightly lower than properties in less prime areas might offer, this reflects the premium paid for a Pasak location and its associated stability and appreciation potential.
• Cash-on-Cash Return (CoC): Assuming an all-cash purchase (no debt financing), the pre-tax CoC return is equivalent to the Cap Rate. Annual Pre-Tax Cash Flow (NOI) = 1,418,328 THB. CoC Return = (1,418,328 THB / 24,300,000 THB) * 100% ≈ 5.84%. (Leverage would alter this calculation significantly).
• Gross Rent Multiplier (GRM): (Total Investment Cost / Gross Potential Annual Rent) = 24,300,000 THB / 1,980,000 THB ≈ 12.27.

4. Role of Support Partner: Oneness Work Co., Ltd.

The involvement of Oneness Work Co., Ltd. is a critical component of this investment strategy, providing essential local expertise and comprehensive management services. Their role ensures operational efficiency and minimizes the burden on the investor. Key responsibilities include:

• Investment Management Administration: Providing foundational administrative support for the investment structure.
• Documentation & Government Liaison: Managing all necessary legal and regulatory paperwork, liaising effectively with Thai government bodies for permits, licenses, and ongoing compliance.
• Investment Paperwork Management: Systematically organizing and maintaining all crucial investment documents, financial records, and agreements.
• Property Maintenance & Upkeep: Implementing and overseeing a proactive maintenance program to preserve the property's condition and tenant appeal, managing all repairs and upkeep tasks.
• Financial Administration: Handling all financial aspects of the rental operation, including efficient rent collection, payment of operating expenses, and delivering clear, regular financial reports to the investor.
• Future Exit Facilitation: Offering strategic advice and execution support for the eventual resale of the property, aiming to maximize investor returns through their market insight and network.

Oneness Work Co., Ltd. acts as the investor's trusted partner on the ground, ensuring the asset is professionally managed and compliant with all local requirements.

5. Investor Persuasion:

The ZENITHY VILLA investment offers a compelling proposition for investors seeking exposure to the high-end Phuket real estate market, characterized by:

• Premier Location: Pasak is undeniably one of Phuket's most sought-after residential addresses, offering prestige, security, and unparalleled convenience – factors that drive rental demand and support property values.
• Quality Asset: A modern 3-bedroom, 4-bathroom villa with substantial living space, designed to meet the expectations of the premium long-term rental market.
• Stable Income Stream: Targeting the resilient long-term rental market in a prime location reduces exposure to tourism seasonality and provides potential for consistent cash flow, projected at a Cap Rate of ~5.84%.
• Capital Appreciation Potential: Prime locations like Pasak typically demonstrate stronger long-term capital appreciation compared to secondary areas.
• Hassle-Free Ownership: The comprehensive management solution provided by Oneness Work Co., Ltd. allows investors (especially those overseas) to benefit from the investment without dealing with day-to-day operational complexities.

While the Cap Rate reflects the premium nature of the location, the overall proposition—combining solid yield potential with strong prospects for capital growth in a blue-chip Phuket neighbourhood, all under professional management—is highly attractive. This investment balances income generation with wealth preservation and growth potential.

Conclusion & Recommendation:

We recommend the acquisition of ZENITHY VILLA as a strategic long-term real estate investment. The combination of a high-quality property, an exceptional location in Pasak, strong underlying demand in the target rental market, and professional end-to-end management by Oneness Work Co., Ltd., presents a robust investment case. The projected financial metrics indicate a solid return profile, complemented by significant potential for capital appreciation over time. This opportunity is well-suited for investors seeking a premium, managed asset within the dynamic Phuket property landscape.

For inquiries about investment, please contact:

Pongsak Chanyu : Mob/WhatsApp: +66 62 329 5687

Nikhil Jain : Mob/WhatsApp: +66 82 240 0046

Oneness Work Co., Ltd.

Phuket @ Town, Surin Rd., Mueang,

Phuket, 83000 THAILAND

onenessworkgroup@gmail.com