Luxury Long-Term Residential Investment – BOTANICA FORESTA

BOTANICA FORESTA

·       Location: Thepkrasatti

·       Bedroom: 4

·       Bathroom: 4

·       Build Up Area: 450 sqm

·       Land Plot: 777 sqm

·       Monthly Rent Rate: 330,000 THB

·       Annual Common Fee: 116,550 THB

·       Investment Cost: 48,800,000 THB  

CONFIDENTIAL INVESTMENT ANALYSIS REPORT

Project: Luxury Long-Term Residential Rental Investment – BOTANICA FORESTA

Location: Thepkrasattri, Phuket, Thailand

Prepared For: Prospective Investors seeking Substantial Luxury Assets

Prepared By: ONENES WORK CO., LTD.

Executive Summary:

This report outlines an investment opportunity concerning a luxury villa within the BOTANICA FORESTA development, situated in the Thepkrasattri area of northern Phuket, Thailand. The investment involves the acquisition of a substantial 4-bedroom property for long-term rental, requiring a total capital outlay of 48,800,000 THB. This offering from the reputable Botanica developer distinguishes itself with a very generous land plot (777 sqm) complementing a large build area (450 sqm), appealing to the luxury market segment prioritizing space, privacy, and greenery. While Thepkrasattri is located north of the prime west coast beaches, select developments like Botanica Foresta offer high-quality living with good access to northern island amenities, including international schools. Supported by the management expertise of Oneness Work Co., Ltd., this investment is projected to yield strong returns, with an estimated Capitalization Rate of approximately 5.51%. This analysis provides an evaluation of the asset, the strategic plan, financial projections, and the vital role of the support partner.

1. Investment Analysis:

• Property Overview: The subject property is a large, luxury 4-bedroom, 4-bathroom villa within the BOTANICA FORESTA project. It features a significant build-up area of 450 sqm situated on an exceptionally spacious land plot of 777 sqm. This generous land-to-build ratio, combined with the "Foresta" branding, suggests a development philosophy emphasizing space, landscaping, and privacy. The Botanica brand assures high standards of design, construction quality, and finishes, targeting the discerning luxury rental market. The property's scale is well-suited for affluent families or executives seeking substantial residential space.
• Location Analysis (Thepkrasattri, Phuket): Thepkrasattri refers to both the main northern artery road and the large northern sub-district of Phuket. While not possessing the immediate prime beach access or prestige of Bangtao/Surin, specific high-end gated communities within Thepkrasattri offer compelling advantages. These often include larger land plots, enhanced privacy, and potentially better value per square meter compared to core west coast areas. Crucially, this location offers convenient access to key northern Phuket facilities such as UWC Thailand International School, British International School Phuket (BISP), Phuket International Airport (HKT), marinas, and lifestyle hubs like Blue Tree Phuket. Assuming Botanica Foresta is strategically located within a desirable enclave in Thepkrasattri, it appeals strongly to families linked to these northern amenities.
• Market Context (Phuket Luxury Long-Term Rentals): There exists a distinct and robust market segment for large, high-quality family homes in secure, managed developments. While west coast premiums are undeniable, families prioritizing proximity to major international schools (UWC, BISP), space for children, privacy, and potentially easier airport access often favour high-end communities in the northern part of the island. The proposed rent of 330,000 THB reflects the property's substantial size, very large land plot, Botanica brand quality, and its appeal to this specific demographic.
• Investment Rationale: This investment leverages the opportunity to acquire a large-scale luxury villa from a reputable developer (Botanica) on an expansive land plot, offering significant space and privacy. It targets the affluent family rental market, particularly those connected with Phuket's northern international schools and amenities. The rationale balances the acquisition of a high-quality, spacious asset with a location that offers strategic advantages for a specific, stable tenant pool, aiming for strong rental yields and long-term capital growth.

2. Business Plan:

• Objective: To attract and retain high-quality, long-term tenants (primarily affluent families), generate consistent premium rental income, maintain the property to Botanica standards, and achieve favourable capital appreciation.
• Strategy:
• Positioning: Market the villa as a spacious, luxurious family residence within the exclusive Botanica Foresta development, emphasizing the expansive land, privacy, greenery, quality finishes, and secure environment. Highlight the value proposition (space/quality for price) compared to smaller properties in core beach areas.
• Tenant Acquisition: Focus marketing efforts on channels reaching expatriate families, particularly those associated with UWC Thailand and BISP. Engage with corporate relocation specialists, executive search firms, and specialist real estate agents catering to the luxury family market. Utilize high-quality visuals emphasizing the property's space and lifestyle benefits.
• Tenant Screening: Employ thorough vetting procedures to ensure tenants are financially stable, reliable, and suited to maintaining a luxury property. Obtain appropriate security deposits.
• Operations: Delegate comprehensive property management to Oneness Work Co., Ltd., ensuring responsive service, efficient rent collection, and proactive maintenance.
• Maintenance: Implement a meticulous maintenance schedule managed by Oneness Work Co., Ltd. to uphold the property's luxury standards and appeal. The higher common fee likely contributes to well-maintained communal areas, enhancing overall desirability.
• Risk Management:
• Location Perception: Compared to Bangtao, Thepkrasattri requires clearer articulation of its specific advantages (space, value, northern access). Mitigation: Targeted marketing emphasizing these benefits and the Botanica brand assurance.
• Vacancy Risk: Dependent on attracting the specific target demographic. Mitigation: Strong outreach to school communities and relocation agents, ensuring the property presents immaculately.
• Exit Strategy: Target future resale towards families seeking large, high-quality homes in managed estates or investors seeking substantial luxury assets. Oneness Work Co., Ltd. will manage the sales process to optimize returns.

3. Financial Projections:

• Total Investment Amount Required: 48,800,000 THB (Note: Ancillary costs like transfer fees, taxes, and legal expenses are additional and should be factored in by the investor).
• Projected Income:
• Proposed Gross Monthly Rent: 330,000 THB
• Gross Potential Annual Rent: 330,000 THB/month * 12 months = 3,960,000 THB
• Vacancy Allowance (Estimated @ 10%): 3,960,000 THB * 10% = 396,000 THB
• Effective Gross Income (EGI): 3,960,000 THB - 396,000 THB = 3,564,000 THB
• Projected Expenses (Annual):
• Common Area Fees (Given): 116,550 THB (Reflects likely extensive grounds/services)
• Property Management Fee (Estimated @ 10% of EGI): 3,564,000 THB * 10% = 356,400 THB (Confirm specific terms)
• Maintenance & Repairs Allowance (Est. @ 6% of EGI due to scale): 3,564,000 THB * 6% = 213,840 THB
• Property Tax (Estimated): Based on official assessment; estimated at ~48,800 THB (Subject to confirmation)
• Building Insurance (Estimated for high value): ~50,000 THB
• Contingency (Estimated @ 2.5% of EGI): 3,564,000 THB * 2.5% = 89,100 THB
• Total Estimated Annual Expenses: 116,550 + 356,400 + 213,840 + 48,800 + 50,000 + 89,100 = 874,690 THB
• Projected Net Operating Income (NOI):
• NOI = EGI - Total Expenses
• NOI = 3,564,000 THB - 874,690 THB = 2,689,310 THB
• Proposed Monthly Rental Rate Justification: The 330,000 THB monthly rent is justified by the property's significant attributes: large 4-bedroom configuration (450 sqm build), exceptionally generous land plot (777 sqm offering substantial outdoor space/privacy), the premium Botanica brand reputation, and high-quality finishes expected in the "Foresta" line. This rate targets tenants prioritizing space, quality, and potentially proximity to northern Phuket amenities, offering compelling value compared to smaller properties in prime west coast locations demanding similar rents.
• Break-Even Point:
• Break-Even Occupancy (to cover operating expenses): (Total Annual Expenses / Gross Potential Annual Rent) = 874,690 THB / 3,960,000 THB ≈ 22.1%. This implies the villa must be rented for approximately 2.65 months (or 81 days) per year to cover annual operating cash costs (excluding financing).
• Simple Payback Period (Time to recoup investment via NOI): (Total Investment Cost / Annual NOI) = 48,800,000 THB / 2,689,310 THB ≈ 18.1 years. (This simplified calculation excludes financing effects, income tax, transaction costs, and potential capital appreciation).
• Financial Metrics (Based on All-Cash Purchase Assumption):
• Capitalization Rate (Cap Rate): (Annual NOI / Total Investment Cost) = 2,689,310 THB / 48,800,000 THB ≈ 5.51%. This represents a strong unlevered annual return for a luxury property of this scale. It reflects a favourable balance between the asset's quality/size and the achievable rental income, even considering the Thepkrasattri location.
• Cash-on-Cash Return (CoC): Assuming an all-cash acquisition, the pre-tax CoC return is equivalent to the Cap Rate. Annual Pre-Tax Cash Flow (NOI) = 2,689,310 THB. CoC Return = (2,689,310 THB / 48,800,000 THB) * 100% ≈ 5.51%. (Leverage would modify this return).
• Gross Rent Multiplier (GRM): (Total Investment Cost / Gross Potential Annual Rent) = 48,800,000 THB / 3,960,000 THB ≈ 12.32.

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

Oneness Work Co., Ltd. provides the essential operational framework for this investment, offering comprehensive support services tailored to luxury properties:

• Investment Management Administration: Foundational administrative support for the investment.
• Documentation & Government Liaison: Expert handling of all Thai regulatory requirements, permits, and compliance.
• Investment Paperwork Management: Maintaining organized and accessible records for the investor.
• Property Maintenance & Upkeep: Overseeing high standards of maintenance, gardening (critical for "Foresta"), and repairs.
• Financial Administration: Efficient management of rent collection, bill payments, and transparent financial reporting.
• Future Exit Facilitation: Providing strategic market advice and managing the sales process for optimal resale value.

Their involvement ensures professional management, compliance, and peace of mind for the investor.

5. Investor Persuasion:

The BOTANICA FORESTA villa presents a compelling investment case for those targeting the luxury segment:

• Substantial Luxury Asset: Acquire a large (4 bed, 450 sqm build), high-quality villa from a leading Phuket developer (Botanica) on an exceptionally spacious plot (777 sqm).
• Value Proposition: Offers significant space, privacy, and greenery, representing strong value compared to smaller properties in prime beach areas at potentially similar price points.
• Targeted Demand: Caters effectively to the affluent family market, particularly those connected with Phuket's prestigious northern international schools (UWC, BISP).
• Strong Projected Returns: An estimated Cap Rate of ~5.51% indicates robust income potential for a luxury asset of this scale.
• Brand Recognition: The Botanica brand enhances desirability, tenant appeal, and resale value.
• Professional Management: Oneness Work Co., Ltd. provides a turnkey solution, mitigating operational hassles.

This investment offers an attractive blend of substantial asset quality, strong yield potential, and long-term capital growth prospects, appealing to investors seeking exposure to the luxury family home market in Phuket.

Conclusion & Recommendation:

We recommend the acquisition of this BOTANICA FORESTA villa as a strategic investment into a high-quality, spacious luxury property in Phuket. Its specific appeal to the affluent family market, particularly those prioritizing space and proximity to northern island amenities, combined with the Botanica brand's strength and the projected ~5.51% Cap Rate, makes it a compelling proposition. The comprehensive management provided by Oneness Work Co., Ltd. further solidifies the investment's operational viability. This opportunity is well-suited for investors seeking a substantial luxury asset with strong income potential and favourable long-term appreciation prospects.

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