University Apartment Complex

University Apartment Complex

Location: Korat

Listing ID# BKK13753

Price: 58,500,000THB

BUSINESS SUMMARY

(UPDATE! A 10 percent reduction has been brought into effect, bringing the asking price down to 58,500,000 baht. The area around the university is booming, with many projects being built. Land values have gone through the roof and 4,000,000 baht per rai (almost Phuket prices) now seems to be the norm. The owner feels that the ability to build a further 50 units within the complex is highly beneficial, as the land value of the units alone is 28,000,000 baht now. If you add the units at 200,000 baht each plus the roads, shop and infrastructure, the value of the complex comes in at around 50,000,000 baht. The house is on nine rai and fully fenced (seven foot rendered concrete, painted inside and out) and landscaped. Buildings plus pool and infrastructure cost about 8,000,000 baht, and if you add the value of the land at about 1,000,000 per rai this equates to 17,000,000 baht. So all in all the owner thinks that the asking price is very good value (i.e. 67,000,000 baht value for 58,500,000 baht).

This newly constructed Apartment Complex is 600 metres from the entrance to the biggest university in North Eastern Thailand. Featuring 90 self contained units measuring 28 square metres each, the complex was recently voted as the best in the area by the students. As the university increases its intake by 30 per cent each year the complex is not expected to ever have a shortage of tenants. There are approved plans to turn Hua Yang (a huge lake) into a resort area by edging the entire lake with sand. A large four star resort has already been constructed on the edge of the lake, and the apartment complex sits just 500 metres away. Consequently the owners envisage the property eventually becoming a hotel.

A home sitting on nine rai of freehold land is included in the sale; this could also be easily converted to a resort if desired, as five rai is currently vacant and could therefore be used to build more units, especially as the property has been designed with road access to the rear. Alternatively a house and land package development could be constructed here. There is a 220 square metre workshop onsite, and this provides a further valuable asset to the business.

The owners have been very happy with enterprise to date, but are now moving back to Australia due to the illness of a family member. Freehold land to be acquired measures 16 rai in total, and is home to the main apartment building with mini-mart and the residence with workshop; the remainder is land for future development. Normal monthly rental income will be 248,000 baht per month (currently slightly less due to an opening promotion) and the mini-mart brings in around 120,000 baht per month. There is also a laundry onsite that brings in further revenue. The apartment complex also has 30 car parking spaces. A 2008 Toyota Vigo four door pickup is also included in the sale. New asking price: 58,500,000 baht.

www.sunbeltlegaladvisors.com

26th Floor Fortune Town BR, 1 Ratchadapisek Rd, 10400 Bangkok

Tel: 02-642-0213 Fax: 02-641-1995

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