ANCHAN VILLA PHASE I, CHOENG THALE, PHUKET

ANCHAN VILLA PHASE I

·       Location: Choeng Thale

·       Bedroom: 2

·       Bathroom: 2

·       Build Up Area: 412 sqm

·       Land Plot: 535 sqm

·       Monthly Rent Rate: 165,000 THB

·       Annual Common Fee: 80,250 THB

·       Investment Cost: 24,500,000 THB  

INVESTMENT ANALYSIS REPORT: ANCHAN VILLA PHASE I, CHOENG THALE, PHUKET

Prepared For: Potential Investors

Prepared By: ONENESS WORK CO., LTD.

Subject: Investment Opportunity Analysis – Long-Term Rental Villa (Anchan Villa Phase I), Choeng Thale, Phuket, Thailand

CONFIDENTIALITY NOTICE: This document contains confidential and proprietary information intended solely for the use of the 1 individual or entity to whom it is addressed. Any review, retransmission, dissemination, or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. 2  

1. EXECUTIVE SUMMARY

This report details an investment opportunity involving the acquisition of a 2-bedroom villa within the established Anchan Villa Phase I development, located in the prime Choeng Thale area of Phuket, Thailand. The strategic objective is to operate this property as a long-term rental, generating consistent income and benefiting from potential capital appreciation. Notably, this villa offers an exceptionally large build-up area (412 sqm) and land plot (535 sqm) for a 2-bedroom configuration, combined with the reputable Anchan developer brand.

Situated in Choeng Thale, adjacent to Bangtao and the Laguna complex, the property benefits from a highly desirable location. Despite being a 2-bedroom unit, its significant size, location, and brand association support a premium rental positioning. Our financial analysis, based on an investment cost of 24,500,000 THB and a proposed monthly rent of 165,000 THB, projects a Net Operating Income (NOI) yielding a Capitalization Rate (Cap Rate) of approximately 5.67% and an all-cash Cash-on-Cash Return of approximately 5.40%.

The partnership with Oneness Work Co., Ltd. for comprehensive management provides essential operational oversight and risk mitigation. While the yield metrics are slightly moderated compared to some larger-bedroom configurations, this opportunity presents a lower capital entry point to acquire a branded, unusually spacious villa in a prime Phuket location, targeting a specific, affluent niche market. We recommend this investment for consideration by those seeking a quality asset with strong fundamentals and professional management.

2. INVESTMENT ANALYSIS

2.1. Property Overview: The subject property is a villa located within Anchan Villa Phase I:

• Location: Choeng Thale, Phuket, Thailand – A premier residential area encompassing Bangtao and Laguna.
• Developer/Phase: Anchan Villa Phase I
• Type: Private Villa
• Configuration: 2 Bedrooms, 2 Bathrooms.
• Size: Exceptionally large 412 sqm Built-Up Area on a substantial 535 sqm Land Plot.
• Attributes: Benefits from the Anchan brand reputation for quality construction and design. The size offers spacious living atypical for a 2-bedroom layout. Being Phase I suggests maturity within the development.

2.2. Location Analysis (Choeng Thale, Phuket): Choeng Thale is a sought-after sub-district on Phuket's west coast, valued for:

• Prime Positioning: Includes or is immediately adjacent to key areas like Bangtao Beach, Laguna Phuket Resort Complex, Boat Avenue, and Porto de Phuket lifestyle malls.
• Excellent Amenities: Offers access to world-class dining, shopping, international schools, medical facilities, and recreational activities (golf, beach clubs).
• Target Appeal: Attracts a mix of expatriates, long-term tourists, and affluent locals seeking convenience and a high standard of living.
• Accessibility: Well-connected via road networks and approximately 30-40 minutes from Phuket International Airport.
• Market Stability: Historically demonstrates resilient demand and property values, particularly for branded developments.

2.3. Market Context: The Phuket long-term rental market remains robust, particularly for high-quality properties in prime locations. While 3-bedroom villas often cater to families, there is a distinct market for premium 2-bedroom villas sought by couples, small families, or affluent singles/sharers demanding luxury and space. The proposed rent of 165,000 THB positions this villa at the high end for a 2-bedroom unit but is justifiable based on the unique combination of the Anchan brand, prime location, and, most significantly, the exceptionally large living space (412 sqm build-up) and land plot (535 sqm), offering a level of spaciousness rarely found in 2-bedroom configurations.

2.4. SWOT Analysis:

• Strengths: Prime Location (Choeng Thale), Reputable Developer Brand (Anchan), Exceptional Size/Land Plot for a 2-Bed, Lower Initial Investment Cost, Established Development (Phase I), Professional Support Partner.
• Weaknesses: 2-Bedroom Configuration (smaller target market than 3-beds), Higher Annual Common Fee, Phase I implies potentially older construction (may require slightly higher maintenance focus than brand new), Premium Rent Rate requires strong justification/marketing.
• Opportunities: Attract Niche Market seeking Luxury & Space over bedroom count, Potential for Strong Capital Appreciation due to Brand/Location/Size, Stable Long-Term Income Stream.
• Threats: Competition from newer 2-beds or similarly priced 3-beds, Economic Slowdowns impacting luxury rentals, Vacancy Periods, Changes in Thai Property Regulations.

3. BUSINESS PLAN

3.1. Investment Objective: Acquire the Anchan Villa Phase I property and manage it as a premium long-term rental asset. The focus is on attracting and retaining high-quality tenants at the target rent, maximizing occupancy, generating consistent NOI, and realizing long-term capital growth.

3.2. Target Tenant Profile:

• High-income expatriate or local couples.
• Small families (e.g., couple with one child) prioritizing space and location.
• Affluent singles or professionals seeking a large, luxurious living environment.
• Potentially two professionals sharing who value extensive personal and common space.

3.3. Marketing & Leasing Strategy: Managed by Oneness Work Co., Ltd., the strategy will emphasize the unique selling propositions: the prestigious Anchan brand, the prime Choeng Thale location, and crucially, the extraordinary spaciousness (412 sqm build / 535 sqm land) for a 2-bedroom villa. Professional marketing materials will target appropriate high-end rental portals and potentially relocation agents catering to executives and affluent individuals. Rigorous tenant screening and preference for 12-month leases remain key.

3.4. Operational Management: Oneness Work Co., Ltd. provides a full-service operational solution, including:

• Targeted marketing, tenant vetting, lease negotiation and administration.
• Efficient rent collection, deposit handling, and transparent financial reporting.
• Oversight of all property maintenance, including common area liaison (related to the fee), routine upkeep (pool/garden - if applicable), and repairs.
• Tenant relationship management.
• Ensuring compliance with all local laws and development regulations.
• Management of operating expense payments.

3.5. Risk Management:

• Vacancy: Addressed by highlighting unique selling points (size, brand), competitive positioning (value via space), professional marketing, and prudent vacancy allowance in projections.
• Maintenance: Managed via annual reserve fund and professional oversight. Acknowledge Phase I status might warrant diligent upkeep monitoring.
• Higher Common Fee: Factored into expense projections; necessitates ensuring tenants perceive value commensurate with overall rental cost.
• Market/Regulatory: Standard risks mitigated by prime location, quality asset, professional management, and investor portfolio diversification.
• Insurance: Comprehensive property and liability insurance are essential.

3.6. Exit Strategy: A long-term hold (5+ years) is recommended to benefit from income and appreciation. The unique nature of this large 2-bed villa within a branded development could appeal to a specific buyer segment upon resale. Oneness Work Co., Ltd. will manage the eventual sale process.

4. FINANCIAL PROJECTIONS

4.1. Total Investment Amount Required:

• Property Purchase Price: 24,500,000 THB
• Estimated Closing Costs (Transfer fees, taxes, legal - assuming approx. 5%): 1,225,000 THB
• Estimated Total Initial Investment: 25,725,000 THB (Note: Closing costs require precise verification. Furnishing costs are additional unless included.)

4.2. Projected Income:

• Proposed Monthly Rental Rate: 165,000 THB
• Gross Potential Annual Rent (165,000 THB * 12 months): 1,980,000 THB
• Vacancy & Collection Loss Allowance (assuming 8%): (158,400 THB) (Justification: Standard prudent allowance for turnover and potential delays.)
• Effective Gross Income (EGI): 1,821,600 THB

4.3. Projected Expenses:

• Annual Common Area Fee (Given): 80,250 THB
• Property Management Fee (assuming 10% of EGI): 182,160 THB (Justification: Standard rate for full management scope.)
• Maintenance & Repairs Reserve (assuming 5% of Gross Potential Rent): 99,000 THB (Justification: Essential buffer for upkeep, considering age/size.)
• Property Taxes (estimated): 30,000 THB (Note: Subject to official assessment; may be slightly lower due to purchase price.)
• Building & Liability Insurance (estimated): 25,000 THB (Estimate; requires specific quotes.)
• Miscellaneous (Pest control, admin): 15,000 THB
• Total Estimated Annual Operating Expenses: 431,410 THB

4.4. Net Operating Income (NOI):

• EGI - Total Expenses = 1,821,600 THB - 431,410 THB
• Projected Annual NOI: 1,390,190 THB

4.5. Proposed Monthly Rental Rate Justification: The 165,000 THB monthly rate is positioned at the premium end for 2-bedroom villas but is strongly justified by:

• The prestigious and recognized Anchan developer brand.
• The prime Choeng Thale location near Laguna and key amenities.
• The exceptional size (412 sqm build, 535 sqm land), offering unparalleled space for a 2-bedroom configuration.
• Assumed high-quality finishes and private pool consistent with the Anchan brand. This rate targets a specific market niche valuing these unique attributes over simply the number of bedrooms.

4.6. Break-Even Point:

• Operating Expense Break-Even (Occupancy):
• Total Annual Expenses / Gross Potential Annual Rent = 431,410 THB / 1,980,000 THB ≈ 21.8%
• This indicates the property must be rented for approximately 2.6 months (21.8% of 12 months) annually to cover operational costs, leaving a substantial margin for profit within the projected 92% occupancy.
• Investment Recoupment (Simple Payback - ignoring time value & appreciation):
• Total Investment / Annual NOI = 25,725,000 THB / 1,390,190 THB ≈ 18.5 years. Again, less critical than ROI metrics incorporating appreciation.

4.7. Financial Metrics:

• Capitalization Rate (Cap Rate):
• Annual NOI / Purchase Price = 1,390,190 THB / 24,500,000 THB ≈ 5.67%
• (Analysis: A solid Cap Rate demonstrating good income potential relative to the property's purchase price, especially for a branded asset in a prime location.)
• Cash-on-Cash Return (CoC - assuming all-cash purchase):
• Annual NOI / Total Initial Investment = 1,390,190 THB / 25,725,000 THB ≈ 5.40%
• (Analysis: Represents a respectable annual cash yield on the total invested capital, attractive given the lower capital entry point and brand security.)
• Gross Rent Multiplier (GRM):
• Purchase Price / Gross Potential Annual Rent = 24,500,000 THB / 1,980,000 THB ≈ 12.37
• (Analysis: Falls within a reasonable range, suggesting the purchase price is well-aligned with the property's income-generating capability.)
• Total Return on Investment (ROI): This will be the sum of the annual cash returns (CoC) and the capital appreciation achieved over the holding period. The unique nature and location offer potential for positive appreciation.

5. ROLE OF SUPPORT PARTNER: ONENESS WORK CO., LTD.

Oneness Work Co., Ltd.'s role remains crucial for optimizing this investment and ensuring smooth operations. Their comprehensive services encompass:

• Investment Management Administration: Setup and ongoing administrative support.
• Documentation & Government Liaison: Professional handling of all necessary legal, regulatory, and governmental interactions and paperwork.
• Investment Paperwork Management: Secure and organized maintenance of all investment-related documentation.
• Property Maintenance & Upkeep Oversight: Proactive management of property condition, coordinating maintenance and repairs efficiently.
• Rental Income & Financial Administration: Reliable rent collection, expense payment, and transparent financial reporting.
• Future Sale Facilitation: Expert guidance and management of the property resale process when desired by the investor.

This partnership provides indispensable local knowledge, operational capacity, and administrative support, allowing investors to benefit from the Phuket market with reduced personal burden and risk.

6. INVESTOR PERSUASION & CONCLUSION

The Anchan Villa Phase I presents a unique investment opportunity to acquire a property carrying the prestige of the Anchan brand in the prime Choeng Thale area, at a more accessible investment level (24.5M THB) than typically required for villas of this substantial size. While configured with 2 bedrooms, its exceptional build area (412 sqm) and land plot (535 sqm) create a distinct niche appeal.

Key Strengths for Investment Consideration:

• Lower Capital Entry Point: Allows investment in a prime branded villa at a lower cost than larger configurations.
• Anchan Brand Recognition: Adds inherent value, tenant appeal, and potential resale strength.
• Exceptional Space Utility: Offers luxury and spaciousness highly desired by its target niche market.
• Prime Location: Choeng Thale provides access to Phuket's best amenities and lifestyle offerings.
• Solid Financial Projections: A Cap Rate of 5.67% and CoC Return of 5.40% indicate healthy returns.
• Professional Management: Oneness Work Co., Ltd. ensures efficient, compliant, and low-hassle ownership.

This investment caters effectively to a specific segment of the luxury rental market that prioritizes space, quality, brand, and location. The combination of these factors, coupled with a lower initial investment and professional support, makes this Anchan Villa Phase I property a compelling proposition.

We recommend this opportunity for investors seeking a branded asset in a prime Phuket location with solid return potential and the benefits of turnkey professional management.

7. CONTACT US

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