Long-Term Residential Investment – ANCHAN FLORA

ANCHAN FLORA

·       Location: Choeng Thale

·       Bedroom: 4

·       Bathroom: 4

·       Build Up Area: 451 sqm

·       Land Plot: 652 sqm

·       Monthly Rent Rate: 260,000 THB

·       Annual Common Fee: 97,800 THB

·       Investment Cost: 38,000,000 THB  

CONFIDENTIAL INVESTMENT ANALYSIS REPORT

Project: Long-Term Residential Rental Investment – ANCHAN FLORA

Location: Choeng Thale, Phuket, Thailand

Property Type: Luxury Villa (4 Bedroom, 4 Bathroom)

Date: April 27, 2025

 Prepared For: Prospective Investors

Prepared By: ONENESS WORK CO., LTD.

EXECUTIVE SUMMARY:

This report presents a detailed analysis of an attractive real estate investment opportunity involving the acquisition of a luxury villa within the Anchan Flora development, located in the highly sought-after Choeng Thale area of Phuket, Thailand. The strategy centers on securing this 4-bedroom property for long-term rental income generation, capitalizing on the area's prestige and strong demand, while also positioning for potential capital appreciation. Choeng Thale is widely regarded as one of Phuket's premier residential districts, attracting a significant population of expatriates, executives, and affluent families due to its proximity to world-class amenities, beaches, and international schools.

The total required investment is estimated at 39,140,000 THB, covering the purchase price and related acquisition expenses. Market analysis supports a projected monthly rental rate of 260,000 THB. After accounting for operational costs and a conservative vacancy allowance, the property is projected to generate an annual Net Operating Income (NOI) of approximately 2,278,200 THB. This translates favorably into an estimated initial Capitalization Rate (Cap Rate) of approximately 6.00% and a projected Cash-on-Cash Return (assuming an all-cash acquisition) of 5.82%.

A key strength of this proposal is the integral role of Oneness Work Co., Ltd., which will serve as the dedicated support partner managing all facets of the investment, from administration and compliance to property upkeep and financial oversight. This ensures professional management and significantly reduces the operational burden on the investor. Given the property's prime location, the reputation of the Anchan developer, strong market dynamics, and compelling financial projections, we recommend this investment as a viable and potentially profitable venture.

1. INVESTMENT ANALYSIS:

1.1. Property Overview: The investment focuses on a villa within the Anchan Flora development, known for its distinctive modern Balinese architecture and high standard of construction, a hallmark of the Anchan brand. Key details:

• Location: Choeng Thale, Thalang District, Phuket. This is a prime residential location, adjacent to the Laguna Phuket complex and close to Bang Tao and Layan beaches. It offers unparalleled access to upscale dining, shopping (Boat Avenue, Porto de Phuket), lifestyle amenities, golf courses, and leading international schools, making it exceptionally desirable for the target long-term rental demographic.
• Size: 4 Bedrooms, 4 Bathrooms.
• Area: Build-Up Area: 451 sqm; Land Plot: 652 sqm. A well-proportioned villa offering ample living space.
• Features: Expected high-quality finishes, private swimming pool, landscaped garden, likely within a secure, managed estate environment (indicated by common fees).

1.2. Market Context: The Phuket real estate market, particularly in the premium Choeng Thale corridor, remains robust for long-term rentals. Key drivers include:

• Prime Location Appeal: Choeng Thale is arguably Phuket's most desirable residential area for affluent expatriates and families.
• Lifestyle Hub: Proximity to Laguna, Bang Tao Beach, high-end retail, dining, and recreational facilities commands premium rental values.
• Expatriate & Executive Demand: Continued influx of professionals and families relocating for work, education, and lifestyle.
• Quality Housing Demand: Anchan villas are well-regarded and sought after in the rental market due to their design, quality, and location.

The long-term rental strategy aligns perfectly with the residential character and demand profile of the Choeng Thale area.

1.3. SWOT Analysis:

• Strengths: Premier location (Choeng Thale); Reputable developer (Anchan); Strong and established rental demand in the area; High-quality villa specifications; Slightly lower investment entry point compared to similar new builds in other prime zones; Professional support partner (Oneness Work Co., Ltd.).
• Weaknesses: Significant capital outlay required; Potential competition from other luxury villas within Choeng Thale.
• Opportunities: Excellent potential for capital appreciation due to prime location; High likelihood of achieving strong occupancy rates; Ability to command premium rental rates; Leverage professional management for optimal returns.
• Threats: General economic slowdown impacting high-end rental market; Regulatory changes affecting property ownership or rental businesses; Increased supply potentially moderating rental rate growth; Unexpected major maintenance needs.

2. BUSINESS PLAN:

2.1. Investment Objective: To achieve consistent long-term rental income and significant capital appreciation through the ownership and professional management of the Anchan Flora villa in Choeng Thale.

2.2. Target Tenant Profile: Primarily targets senior executives, expatriate families (particularly those with children attending nearby international schools), and high-net-worth individuals seeking premium, long-term (12+ months) accommodation in Phuket's most desirable residential area.

2.3. Marketing & Leasing Strategy:

• Leverage the strong reputation and desirability of the Choeng Thale location and Anchan brand.
• Utilize premium real estate portals, both local and international.
• Collaborate closely with established real estate agencies specializing in the Choeng Thale luxury rental market.
• Direct marketing outreach to relocation companies, major employers, and international schools in the vicinity.
• High-quality visual marketing materials (photos, videos).
• Leasing process managed efficiently by Oneness Work Co., Ltd., including thorough tenant vetting.

2.4. Property Management Strategy: Comprehensive property management will be delegated to Oneness Work Co., Ltd. (details in Section 4). This encompasses proactive maintenance, tenant relations, financial administration, and ensuring the property is maintained to the highest standards to protect its value and rental appeal.

2.5. Risk Management:

• Vacancy Risk: Mitigated by prime location, property quality, competitive pricing strategy, effective marketing, and focus on long-term leases. A vacancy factor is built into projections.
• Tenant Default Risk: Addressed through rigorous screening, substantial security deposits, and clear lease agreements.
• Property Damage: Covered by security deposits, landlord insurance, and regular property checks by the management company.
• Regulatory/Compliance Risk: Managed by Oneness Work Co., Ltd.'s expertise in local laws and administrative procedures.

2.6. Exit Strategy: The primary plan involves holding the asset for long-term cash flow. However, the investment's performance and market conditions will be monitored. An eventual sale will aim to maximize capital gains, benefiting from the property's appreciation potential in the prime Choeng Thale location, with the process managed by Oneness Work Co., Ltd.

3. FINANCIAL PROJECTIONS:

3.1. Total Investment Amount Required:

• Purchase Price: 38,000,000 THB
• Estimated Acquisition Costs (Transfer fees, stamp duty, legal fees - approx. 3%): 1,140,000 THB (Assumption)
• Estimated Total Initial Investment: 39,140,000 THB (Assumes property is rental-ready; furnishing costs, if any, are additional.)

3.2. Projected Income:

• Proposed Monthly Rental Rate: 260,000 THB
• Gross Potential Annual Rent: 260,000×12=3,120,000 THB
• Vacancy Allowance (Estimated at 8.33% ≈ 1 month/year): 3,120,000×0.0833≈260,000 THB (Conservative Assumption)
• Effective Gross Income (EGI): 3,120,000−260,000=2,860,000 THB/Year

3.3. Projected Expenses:

• Annual Common Area Fees: 97,800 THB (Given)
• Property Management Fee (Estimated at 10% of EGI): 2,860,000×0.10=286,000 THB (Assumption - Confirm rate with Oneness Work Co., Ltd.)
• Maintenance & Repairs Reserve (Estimated at 5% of EGI): 2,860,000×0.05=143,000 THB (Assumption)
• Property Tax (Land & Building Tax): Estimated 18,000 THB/Year (Assumption - Subject to official assessment)
• Building Insurance: Estimated 27,000 THB/Year (Assumption)
• Contingency/Other Minor Expenses: Estimated 10,000 THB/Year (Assumption)
• Total Estimated Annual Operating Expenses: 97,800+286,000+143,000+18,000+27,000+10,000=581,800 THB/Year

3.4. Proposed Monthly Rental Rate Justification: The proposed rate of 260,000 THB/month is well-supported for a 4-bedroom Anchan villa in Choeng Thale:

• Location Premium: Choeng Thale commands some of the highest long-term rental rates in Phuket.
• Comparables: Similar quality 4-bedroom villas in the immediate vicinity (Choeng Thale, Layan, Pasak) typically range from 240,000 to 320,000+ THB/month. The proposed rate is competitively positioned.
• Brand & Quality: Anchan is a recognized luxury brand, justifying a premium rate.
• Target Market Alignment: The rate is consistent with the budgets of the targeted executive and affluent family demographic.

3.5. Break-Even Point:

• Net Operating Income (NOI): EGI - Total Operating Expenses NOI=2,860,000−581,800=2,278,200 THB/Year
• Operational Break-Even (Occupancy): Occupancy needed to cover annual operating costs. Break−EvenOccupancy=GrossPotentialAnnualRentTotalOperatingExpenses​=3,120,000581,800​≈18.6% This indicates high profitability potential, covering operational costs with less than 2.5 months of rent per year.
• Investment Recoupment Break-Even (Time - based solely on NOI): Time to recover the total initial investment via NOI (ignores financing, income tax, appreciation). Break−EvenTime=AnnualNOITotalInitialInvestment​=2,278,20039,140,000​≈17.2 Years (This simplified metric is expected to be improved by potential capital appreciation.)

3.6. Financial Metrics (Year 1 Projections):

• Capitalization Rate (Cap Rate): Unleveraged return based on purchase price. CapRate=PurchasePriceAnnualNOI​=38,000,0002,278,200​≈6.00% This is an excellent Cap Rate for a new luxury villa in a prime Phuket location, indicating strong income potential relative to the asset value.
• Return on Investment (ROI - NOI-based): Return based on total initial investment. ROI=TotalInitialInvestmentAnnualNOI​=39,140,0002,278,200​≈5.82%
• Cash-on-Cash Return (CoC): Return on actual cash invested. Assuming an all-cash purchase (no financing): AnnualPre−TaxCashFlow=NOI=2,278,200 THB CoC=TotalInitialInvestmentAnnualPre−TaxCashFlow​=39,140,0002,278,200​≈5.82% (Leverage could potentially increase CoC, subject to financing costs.)
• Gross Rent Multiplier (GRM): GRM=GrossPotentialAnnualRentPurchasePrice​=3,120,00038,000,000​≈12.18 A favorable GRM suggests a healthy relationship between rental income and property value.

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

Oneness Work Co., Ltd.'s involvement is a critical component, providing comprehensive, professional management services designed to optimize the investment and ensure operational smoothness for the investor. Their specific responsibilities will include:

• Investment Management Administration: Strategic oversight, performance reporting, and advisory support concerning the investment.
• Documentation & Compliance: Expert handling of all property acquisition documents, interfacing with Thai government bodies (e.g., Land Department, Or Bor Tor) for permits, licenses, and ensuring full compliance with rental regulations and reporting requirements.
• Investment Paperwork Management: Systematically managing and safeguarding all legal, financial, and operational documents related to the investment.
• Property Maintenance & Upkeep: Implementing proactive maintenance schedules, managing repairs efficiently, overseeing landscaping/pool care (as applicable), conducting property inspections, and ensuring the villa is maintained to a luxury standard.
• Financial Administration: Diligent management of rent collection, timely payment of all outgoings (common fees, utilities if applicable, taxes, etc.), and providing clear, accurate financial reports to the investor regularly.
• Future Sale Facilitation: Expertly managing the process of listing, marketing, negotiation, and closing should the investor decide to sell the property in the future, aiming to achieve the best possible market price.

By entrusting these functions to Oneness Work Co., Ltd., the investor benefits from local expertise, administrative efficiency, risk mitigation, and peace of mind.

5. INVESTOR PERSUASION & CONCLUSION:

The opportunity to invest in an Anchan Flora villa in Choeng Thale represents a strategic entry into Phuket's premier luxury residential rental market.

Key Investment Merits:

• Unbeatable Location: Choeng Thale offers unparalleled access to amenities, schools, and lifestyle elements sought by high-income tenants, underpinning strong rental demand and capital appreciation potential.
• Premium Asset Quality: Anchan is a recognized and respected developer, ensuring a high-quality build and design that attracts discerning tenants.
• Compelling Financials: A projected Cap Rate of 6.00% is highly attractive in the current market, indicating strong income-generating potential relative to the investment cost.
• Professional End-to-End Management: The partnership with Oneness Work Co., Ltd. provides a turnkey solution, handling complex administrative and operational tasks, thereby minimizing investor involvement and maximizing efficiency.
• Strong Market Dynamics: The sustained demand for quality long-term rentals in Phuket, especially in prime locations like Choeng Thale, supports the investment thesis.

This investment offers a compelling blend of potentially high and stable rental income, coupled with strong prospects for long-term capital growth, situated in one of Phuket's most resilient and desirable real estate markets. The slightly lower investment quantum compared to other new builds of similar size, combined with a superior Cap Rate projection, makes this a particularly noteworthy opportunity.

We endorse this investment in Anchan Flora, managed by Oneness Work Co., Ltd., as a sound strategy for achieving attractive returns from the Phuket luxury real estate sector.

6. 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