Rent land to 7-11, Big C etc

[cornishcarlos]

Has anyone rented a plot of land to 7-11 store or Mini Big C, Lotus Express etc ??

We are looking at this as an option for one of our plots, on a main highway 400m before town/village main junction. The town/village is moving out in our direction rapidly ???? There is one 7-11 at the PTT the other side of town and one not on the main road but in the center.

What sort of rent would be applicable, the plot being about 1/3 Rai with 25m main road frontage ?

 

 

[cornishcarlos]

[smutcakes]

Simply impossible to answer without someone having in depth knowledge of the area. I thought for the most part that 7/11 placed heir stores for the most part with someone who owned land and wanted a franchise to operate the store, rather than 7/11 leasing land directly and building and operating their own store.

 

If anyone of them were to do anything they would require a long lease, as they have to invest in building the facility. PTT normally lease land not less than 15 years minimum and preferably longer as they have to invest considerable money into the site to get it up and running. Long lease is normally paid with X% upfront and the remaining paid over the course of the lease period.

 

Very difficult for you to reach out for those companies as they would be very much in demand for any landowner looking to lease out land. To small for a gas station and not enough frontage. Not even sure its big enough for small Big C or Lotus Express when you take possible car parking area into it or loading area.

[cornishcarlos]

2 hours ago, smutcakes said:

Simply impossible to answer without someone having in depth knowledge of the area. I thought for the most part that 7/11 placed heir stores for the most part with someone who owned land and wanted a franchise to operate the store, rather than 7/11 leasing land directly and building and operating their own store.

 

If anyone of them were to do anything they would require a long lease, as they have to invest in building the facility. PTT normally lease land not less than 15 years minimum and preferably longer as they have to invest considerable money into the site to get it up and running. Long lease is normally paid with X% upfront and the remaining paid over the course of the lease period.

 

Very difficult for you to reach out for those companies as they would be very much in demand for any landowner looking to lease out land. To small for a gas station and not enough frontage. Not even sure its big enough for small Big C or Lotus Express when you take possible car parking area into it or loading area.

 

Long lease is what we want.. All those companies do lease land to build their stores on. Yes 7-11 franchise out but also operate their own stores.

There is no issue for parking as there is 8m between the road and where the front of any building would be, us we own everything in those pics and have stacks of parking around the back of the red/yellow buildings.

 

I was more after info from anyone that actually leases land to any of those companies but guess maybe no-one on here does... We will just have to contact them all and see what happens.

 

Thanks anyway...

[alan grice]

Its far to complex for this Forum . The first step is their assessors appraisals .Going from that pic they would then study traffic flow.


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[cornishcarlos]

1 hour ago, alan grice said:

Its far to complex for this Forum . The first step is their assessors appraisals .Going from that pic they would then study traffic flow.


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I think you are probably right there..

Next step will be getting in contact with someone that makes the decisions ???

[Farma]

We weren't asking but had Tesco and a bank approach my wife about a plot she has.

 

In both cases a spotter working for them saw the land and then asked around for the owner. The plot has to be a minimum size for tesco.

 

Tesco eventually decided on another plot and we rejected the bank as they wanted us to lease for 30 years and build a building to their specs. They generously offered us a loan to cover building costs. Lol

 

[ThomasThBKK]

7 11 and PTT are most likely always franchise owners, not the big companies itself - they just buy the land, it's an asset for them, leasing often makes no sense especially  for 30 years.

Edited August 20, 2019 by ThomasThBKK

[thailand49]

I believe if you Google there is a forum regarding 7/11 at least it was there when I did it 8 years ago.  From the picture it is tough and certainly your location it is tougher than Pattaya, 

 

Years ago I was approached to buy a franchise after speaking to one of their representatives English very limited overselling and unable to really answer questions which I had about using examples as to make buying attractive in the end, it didn't make sense to buy one for only 8 years thereafter having to renewal again with another 1.5 2.5 million baht.

 

On that forum I read it was more profitable if you could rent the land to them even if it is long term, a neighbor here in Pattaya maybe 10 years ago was offered 50,000 baht a month for the take over of 3 story building by 7/11.

[VocalNeal]

Given that 7-Eleven is CP and that CP is in bed with Prayut. I doubt you would ever see your land again.

[Sydebolle]

You might be better off building some standard townhouse structures and rent these out - provided there is a market for that. This will allow shorter-term contracts of max. three years (no need to register with the Land Department) as well as maintain certain flexibility on the rental income. 
Once it comes to a 7/11 you're dealing with a franchise holder and, not knowing all the fine print, you might get CP breathing down your neck one day. 

[VocalNeal]

My response was a bit negative but my feelings.

 

You maybe better off approaching another national like Lawsons 108 or........

[cornishcarlos]

All very valid points, so thank you all..

We have just got rid of a cousin and his wood store (a mess) so just looking into other options now...

The thinking is, with a major chain outlet in that gap, the other units will do better business too !! Or we could just build a nice big warehouse type construction and do a wholesale business for local restaurants, it's a 50 min drive to Macro..

Or we could just clear it and sit on it to see what happens in a year or 2 ????

[smutcakes]

The company i work for manages the expansion of a gas company in Thailand, and this is the general process they use:

 

1. Company A has a team called Network planners who look at all the demographics and other indicators nationwide (new roads, infrastructure, new residential areas etc)

2. Network planners create 'range's which are normally 2-3km ranges of certain roads nationwide where they have identified as areas to open stores.

3. That information is passed to land acquisition team (either internal or external).

4. Land acquisition team drive up and down those ranges with checklist and identify 4-5 possible sites, visit lands departments, speak to owners where possible, get commercials where possible and submit report for further assessment.

5. Normally narrowed down to 2-3 sites to commence further negotiation.

6. Commercial agreement, site due diligence etc- signing of lease agreement/purchase of property.

 

Your chances of being able to call up and speak to someone meaningful at Tesco, 7/11 etc who handles this is very low (that is being positive). If you did manage it you would obviously need to hope that your area was an identified range and they would again further need to check other potential plots in that area.

 

Despite what people above mention, these large companies do not want to own these assets. Land in secondary, tertiary locations etc cities is next to impossible to sell and there is no need for it. Perhaps in central location of Bangkok or major area they might purchase but they are not property companies and there is a general trend away from owning.

 

Good luck, but i think your chances are next to zero.

[alan grice]

All very valid points, so thank you all..
We have just got rid of a cousin and his wood store (a mess) so just looking into other options now...
The thinking is, with a major chain outlet in that gap, the other units will do better business too !! Or we could just build a nice big warehouse type construction and do a wholesale business for local restaurants, it's a 50 min drive to Macro..
Or we could just clear it and sit on it to see what happens in a year or 2 [emoji848]

Dont overthink it. You can get advise from C.P. and Lotus property teams. Ive seen this process since David Rhead came over here n started the Tesco Lotus growth . My wife has run franchises for 20 years, I should know more butt i only go to the AGM s for a Beer.????[emoji481]..... i do really but ize sayin nowt!. Good Luck anyway , its got a chance id say.