Weekly Column

Sunbelt Asia Weekly Column 7 June 2019

Sunbelt Asia Weekly Column

7 June 2019

LINE and Visa have announced plans to partner financial services for LINE users by allowing LINEs 187 million global monthly active users to apply for a digital Visa card from within the LINE app. The companies plan to let users add any of their existing Visa cards to make payments from their mobile phones. The companies will also offer users integrated loyalty programs and tailored offers and new payment capabilities for users when they travel overseas. LINE Pay users will be able to use LINE Pay at Visa’s 54 million merchant locations worldwide, allowing them to use LINE Pay offers and services. They will also be able to see these transactions in their LINE Pay digital wallet, even where LINE Pay is not directly accepted.

The MRT line from Hua Lamphong Station to Tha Phra Station in Bangkok Yai will be officially launched on Mother’s Day, August 12, with test runs starting in July and full service is expected by September while the Hua Lamphong-Bang Kae extension, which is on the opposite side of the Tha Phra extension, will be ready for free trial services starting the same day and commercial services will start in September. The completion of these two extensions will see the Blue Line as a full loop and is expected to boost ridership to 800,000 passengers a day as it brings in commuters from Thonburi to inner Bangkok. Meanwhile the Asian Development Bank has signed a loan agreement with Northern Bangkok Monorail Co Ltd and Eastern Bangkok Monorail Co Ltd for construction cost of the long-delayed pink and yellow lines. The pink line will run from Khae Rai – Min Buri and accommodate passengers in northern Bangkok between Min Buri district and Nonthaburi Province while the Yellow Line will run from the Ratchada-Lat Phrao intersection southeast to the Samrong area of Samut Prakan province.

A hotel consultancy firm analyzed data from more than 11,200 accommodations offered by Airbnb and hotels in Bangkok, Phuket and Chiang Mai and found that travelers to Thailand still preferred traditional hotel accommodation over that of the sharing website. They based this on numbers of reviews submitted, finding that in Bangkok hotels received an average of 664.2 reviews compared to 31.3 reviews for Airbnb rooms. Price plays a major factor as the firm found that found the average price per night for hotel accommodation to be lower than for Airbnb across all three markets, especially in Phuket, where the average price per night at a hotel is less than half the average price of Airbnb. Bangkok hotels are only slightly cheaper than Airbnb but found that comparing prices was difficult as in Bangkok Airbnb’s generally offer larger accommodation than hotels. The study also found that reviews translated to price increases for Airbnb rooms, one-point increase in customer review ratings could on average translate to a price increase of 13.8 percent in Chiang Mai, 16.4 percent in Bangkok and 23 percent in Phuket.

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Please feel free to contact us if you are in Thailand on (+66) 02-662-7004 to discuss any of these listings.

Long Running Bangkok Events Organizer

Events are an active and growing business in Thailand and a well-organized and well established events business can go far. This is your opportunity to buy into a long-running and well-known business that has been in business since 1994 and has a list of loyal clients.

The company handles corporate groups that come to Thailand for conferences, gala dinners, corporate team-building and events. Their client list consists mainly of five star hotels and travel agents.

There are 6 full time staff while the current owners handle sales and accounting. Freelancers and sub-contractors are added to the team to handle an average of 50 events per year all over Thailand. The company rent offices and a warehouse in town, with the contract renewable annually. Last year sales reached 25 million with four million baht in profit.

The owner wishes to retire soon but plans to remain available to assist the buyer in the handover period.

ASKING PRICE: 6.6 million baht

Kids Fun Space and Playground

This playground and kids fun space is set in a well-known shopping center in Bang Khae. The business concept was brought in from overseas and caters to sports oriented fun for kids. As parents realize the importance of making sure their children also have time for play and exercise, this business is ideally located as it is in an area surrounded by schools, neighborhoods and a university. A new BTS Skytrain station is scheduled to open this year.

The premises is about 1,000 sqm with five different areas of fun, including a trampoline, giant Legos, and croquet. The business has been being seeing good sales since its opening last year, reaching 10.9 million baht in the first nine months of business. Rent on the premises is 333,000 baht per month and monthly payroll for 11 staff is 100,000 baht. The owner invested 12 million baht in the business but due to partnership problems are selling it for only 13.5 million baht.

ASKING PRICE: 13.5 million baht

Pet Products Importer & Distributor

The love of pets and the disposable income to spend on them has skyrocketed in Thailand over the last few years and this importer and distributor of high-end pet products takes advantage of that trend. With distribution channels in various pet shops, pet hospitals and online, this business turned a profit within the first three years of business. The business has an extensive social media presence as well.

Inventory valued at 1.2 million baht is included in the sale. There are two full time staff and an outsourced accountant with a total monthly payroll of 40,000 baht. This business can easily see growth with a larger online presence and actively seeking out new distribution channels. The owner is moving back to his home country and so this necessitates a sale.

ASKING PRICE: 3. 5 million baht

Futsal Training Center Near Schools & MRT

This futsal training center is near a MRT station and many nearby schools Established in June 2018 the business has seen annual revenues reach 3.2 million baht. There are five full time and one part time staff with a total monthly payroll of 60,000 baht. The lease contract is until 2030 and monthly rent is 120,000 baht.

The owner is forced to sell due to ill health.

ASKING PRICE: 8 million baht

Office Space for Rent or Co-Working Business partnership

This great office space is available for rent either in full or the owner will consider a partner to help develop a co-working space. The space is opposite the Siam Commercial Bank in Ratchayothin, a busy neighborhood in Bangkok. Total space is 600 sqm with three big rooms and six small rooms ideal for a joint venture share on the co-working space concept.

ASKING PRICE: 360,000 baht

Guesthouse in Central Koh Phangan Location

Set in the heart of Ban Tai on Koh Phangan this new 22 bed hostel is convenient to the Full Moon Party as well as the other parties held on the island.

The hostel also has a popular restaurant and bar serving Western and Thai food that seats 26 people. The business also offers motorbikes for rent and those are included in the sale. The rent on this 200 sqm building is only 16,000 baht a month.

The Full Moon Party draws thousands of visitors to the island every single month, while the neighborhood hosts the popular Black Moon Party as well as a few others.

This is a great deal for someone who wants to get in on the ground floor of a backpacker business on Koh Phangan.

ASKING PRICE: 2.5 million baht

Power Equipment Firm near EEC in Rayong

Located in Rayong with easy access to nearby factories and businesses in the EEC, this firm provides power generation equipment as well as acoustic enclosures, stainless exhaust mufflers and generating set load banks. The current owners are selling as one is retiring and returning to his home country while the other partner wishes to focus on his own consulting business. Both partners will help the new owner to better understand the product and transfer customer relationships. The major sales market is currently in Australia. New markets have been targeted, such as the Middle East.

Annual sales have been at 35 million baht with a profit of 5.6 million baht. There are 20 full-time staff with a total monthly payroll of 530,000 baht. The factory is 1500 sm on land that rents for 94,500 baht a month.

The business needs a full-time factory manager to help the business grow. All equipment, fixtures and fittings are included in the sale.

ASKING PRICE: 22 million baht

Updated Price on Kanchanaburi Resort Near Famous Bridge

A price drop on this lovely resort – it is fully licensed and within walking distance of the “River Khwai” or Khwae, as it’s known in Thailand, and 1.2 km from the famed Bridge, a major tourist destination not only for visitors but for local Thais as well. With a gorgeous garden and pool there are 15 bungalows, 3 family bungalows, 5 deluxe bungalows and 6 standard bungalows. Every bungalow has a private bathroom, mini bar, wardrobe, safe box, tea/coffee making set, free WiFi and comes fully air-conditioned. The standard and deluxe bungalows overlook the garden and the family bungalows are behind the swimming pool. The resort also books tours, and offers motorbike and bicycle rentals. There is a charming restaurant as well as a large 2 bed room house complete with full western kitchen.

The resort is one of the top-ranking in Trip Advisor and has an excellent feedback score on Booking.com. The resort occupancy this year is even better and now up to 60% and July and August 70% and now booking till February next year. With the right PR and marketing this resort could see much higher occupancy due to its high ratings. There are 9 full time employees and total monthly wages of 100,000 baht. The hotel has a lease contract to 2020 and pays rent of 240,000 baht every 6 months. Annual sales reach 5-6 million with profits of 1.5 to 3 million. The owner is retiring and believes the business could grow with a dynamic new owner.

NEW ASKING PRICE: 4.8 million baht


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