Please Support The Mercy Mission Kids’ Charity Event

[Mobi]

As many of you know, the Mercy Mission is based at a disused diamond factory location, a couple of kilometrs East of Sukhumvit in North Pattaya.

For those of you who have visited, I am sure you will agree that this is a wonderful and ideal location. There is a free standing house, which presently accommodates 22 children, and there is room there for many more.

The factory itself is a large sprawling building, with many rooms – large and small. The Charity has converted some of the rooms into a reception, offices, playrooms, and class rooms to provide schooling to local, very poor children. There is much scope to do much more here, when funds permit.

There is a good sized parking area, a large, grassed play area with swings etc. for the kids, and a “garden”, a washing area, and an outside eating area at the rear of the compound.

The Mercy Mission can grow and flourish and do many good things at this location.

But there is a snag. At the moment they are renting (50k per month), but the lease expires in December 2007, at which time they have the option to buy for 12million Baht. If they can’t buy at that time, they must vacate and the owner will put it up for sale.

So they have 15 months to raise the 12 million, and this is in addition to their monthly running expenses, approaching 100K per month, (excluding admin expenses, which are all provided free of charge by volunteers)

Many schemes are afoot to try and raise this money, and one of those is a series of Charity events, for those amongst us who are slightly “better heeled”.

The first of these will take place at Bruno’s, next Friday, and is entitled “Hollywood Stars’ Night.” The ticket price is 1,999 Baht, of which 999 Baht will go to the building purchase fund.

Full details are below – just click on the image.

Come on guys – have a fun evening out and help the most worthwhile cause in Pattaya.

Edited September 14, 2006 by Mobi D'Ark

[Woodentop]

Hi Mobi,

I guess I run the risk of irritating you again, but is 12 million Baht really worth paying for the property? I have been there and seen it, and I agree it is good for the purpose. But knowing that we are about to witness a property bubble bursting, or at the very least giving off some steam, perhaps it would be better to try to negotiate a new deal for rental for a while, or move to another property while awaiting the dust to settle. I do not know how much the Mercy Foundation pays for rental, but for 12M Baht, I believe you can rent some pretty good property. Just my 2 cents worth Mobi, and we will be back shortly with some more stuff for the kids OK?

[Mobi]

Hi Mobi,

I guess I run the risk of irritating you again, but is 12 million Baht really worth paying for the property? I have been there and seen it, and I agree it is good for the purpose. But knowing that we are about to witness a property bubble bursting, or at the very least giving off some steam, perhaps it would be better to try to negotiate a new deal for rental for a while, or move to another property while awaiting the dust to settle. I do not know how much the Mercy Foundation pays for rental, but for 12M Baht, I believe you can rent some pretty good property. Just my 2 cents worth Mobi, and we will be back shortly with some more stuff for the kids OK?

Woody,

I promise you will never annoy me again (Us diabetics soimetimes have "hypos" that do funny things to our brains - that's my excuse anyway. Next time I have one, I'll stay away from my PC)

It's fair point, and one that I will put to them. That's a fair sized piece of land they've got there, so I really wouldn't like to say if it's worth that price or not. I dread to think of the upheaval if they ever have to move. Meanwhile, option number one is to buy, and we'll no doubt monitor the situation.

Thanks for all your help and donations.

Mobi

[JohnC]

As a Professional Fundraiser (retired) my advice to the mission would be to a) get an independant valuation and if they then decide to procede get a structural & condition survey. I know the latter will cost money but if they end up buying it they need to allow in their budgets annual maintenance costs. I would also shop around and see what property is available for 12Mill Baht. I know in the UK property prices get inflated if a landlord thinks his tenant does not want the hastle of moving.

Unfortunatley I am heavily committed on a number of projects in Pattaya and cannot help at this moment but will monitor the situation.

JohnC

Edited September 15, 2006 by JohnC

[Mobi]

As a Professional Fundraiser (retired) my advice to the mission would be to a) get an independant valuation and if they then decide to procede get a structural & condition survey. I know the latter will cost money but if they end up buying it they need to allow in their budgets annual maintenance costs. I would also shop around and see what property is available for 12Mill Baht. I know in the UK property prices get inflated if a landlord thinks his tenant does not want the hastle of moving.

Unfortunatley I am heavily committed on a number of projects in Pattaya and cannot help at this moment but will monitor the situation.

JohnC

Thank you John - your comments are well taken, and will be passed on.

I should add that the previous comments were my own, without any reference to the people who run the mission. It was my view that it would be a hassle to move, and I have no idea whether the landlord would be aware of this, or indeed who the landlord even is. I did get the impression that the rent and sale price were at 'friendly' rates, but I may have got confused on this. For all I know they have already had proper valuations - I will find out.

Yes, 12 million is a lot - but it is a big piece of land, near to town, in a developing area, with good existing buildings in a decent state of repair and already being used. I am no property expert, but I would imagine it would be hard to find something similar for much less - but I could be wrong, especially in the currently anticipated downturn.

I'll let you know what they say.

[Mobi]

I have talked to Fred about the property, and here's the deal.

The property is on two rai of land.

The factory is very well built - consisting of virtually all usable space, and measures some 10,000 sq meters.

The house has 6 large bedrooms, four bathrooms, and very large dining and living areas, together with a large basement which is being renovated.

The property is absolutely ideal for theior needs, and they have already invested a lot of time and money in renovating it and adapting it for their use.

It is in a good, rising market, residential area, just east of the Sukhumvit Highway.

The deal is that they signed a contract to buy the property for 12 million Baht, when they moved there in January 2006. They have until December 2007 to come up with the money, and in the meantime must pay a rent of 50k per month. If they cannot find the money to buy, they can walk away in December 2007.

The property was valued/ appraised by 3 independant companies, who a put the market value at between 15 - 20 million Baht.

The deal was a 'friendly' deal with the owners.

As far as I can ascertain, they have done their homework and have gone about the acquisition of the property in a proper and professional manner, and are highly unlikey to find anything approaching the suitability of this place for a similar or lower sum of money.

[Mobi]

Don't forget it's Friday night at Brunos'