Sunbelt Asia Weekly Column
1 March 2019
Half of all new condo purchases by foreign buyers in Bangkok last year were made by Mainland Chinese and Hong Kong residents according to the online real estate portal Juwai.com. A large number of Chinese millennials are entering the South East Asian property market via online purchases, with about 22 percent purchasing properties sight unseen while about half purchase without first visiting the property. Chinese buyers tend to buy for investment purposes and rental income according to the site.
Thai consumer confidence remains high, with 57 percent of those surveyed by Nielsen saying they felt better off than they were five years ago. In 2018 the sales of fast moving consumer goods grew 4-5 percent while exports grew 7.2 percent and tourism 9 percent. Government investment grew five percent in the same period. Consumer lifestyles, even in the smaller provinces are changing and areas like Chonburi and Chiang Rai are expected to see rapid urbanization and growth by 2025. While the e-commerce market has grown it still remains at 1 percent of sales of fast moving consumer goods and in general consumers in South East Asia have a high rate of returns for online purchases. However, e-commerce remains a fast growing sector in the economy and the government is implementing measures to tax online businesses.
New low-cost carrier ZipAir Tokyo, a subsidiary of Japan Airlines, plans on opening a new route to Bangkok from Narita Airport in Tokyo. In a joint venture with Qantas, the airline plans on flying to Suvarnabhumi next year as well as to Incheon in South Korea. Bangkok Airways is also adding new domestic and international flights. Pushing Chiang Mai as a regional hub, the airline will begin flights to Luang Prabang daily at the end of April and direct Chiang Mai Krabi flights at the end of this month. Air Asia is launching a new direct flight from Chiang Mai to Danang in April and from Bangkok to Can Tho and Nha Trang in Vietnam in May. Thai AirAsia withdrew from talks to purchase low cost carrier Nok Air after Thai regulators warned that the proposed acquisition could violate anti-trust laws.
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Well-known recruiting agency
Established 14 years ago, this recruiting agency has developed a great reputation in the Thai market for its extensive database of high-quality candidates and its well-managed recruitment system. With over 1,500 clients and well-trained staff the business has seen profits average 10 million baht a year on revenues of 30 million. There are 20 full time employees and the business is fully licensed with the license not expiring for four more years. There is already a strong associate director in place who is interested in moving the company forward so the new owner will be stepping into a turn-key business.
The founding director is retiring and the company has some independence issues with the network of which it is an independent member. The business has 8 million baht in registered capital and with 20 full-time employees, can support work permits. The business will require a name change but the new owner will retain all databases. Known for its placement with blue chip companies in Thailand, this business is ready for a new owner to walk in.
ASKING PRICE: 25 million baht
Wireless Road hair salon & nail spa
This long-established hair salon offers waxing and a nail spa for its clients in a top Wireless Road location. Wireless Road is often known as Embassy row due to the many embassies on the street but the street is also home to many office buildings and hotels. The salon has been in business for 12 years and has built up a great reputation and many repeat clients.
Rent on the 142 sqm space is 168,000 baht a month and there are 7 employees that earn about 200,000 baht per month in commissions. All of the staff are long-term, well trained technicians. Sales last year is 7,405,242 and net profit 1,628,301. The equipment and furniture are good quality and included in the sale. The shop just finish big renovation for new decoration.
ASKING PRICE: 4.2 million
Bottled foods factory with nationwide distribution
This well-known bottled foods factory was established in Chainat in 2006 and distributes to major grocery store chains in Bangkok and across the country. With a presence in every region around Thailand, this well-known food production business has new products on deck and offers huge growth potential for the energetic new owner.
There are four full time and four part-time employees with sales around 1.8 million a year and a profit of 600,000 baht a year. All licenses are included in the sale as well as distribution arrangements. The owner is selling due to personal reasons unrelated to the business.
ASKING PRICE: 5.5 million baht
Pub in Chiang Mai’s busy Night Bazaar – includes building
You wont just be purchasing this long-running well-known pub, located in the heart of the busy tourist district of the Chiang Mai Night Bazaar, but also property that has grown and will continue to grow in value in this booming city.
The bar and restaurant has earned a reputation for good food and good drinks both with tourists and locals and is well-rated on Trip Advisor for its authentic atmosphere and great location.
Included in the purchase are two units of property covering 4 floors with a total of 400 sqm of area. The restaurant seats 90 people and is fully fitted out. There are 15 staff with a total monthly payroll of 200,000 baht.
The value of the property alone is already 45 million baht. The owner is retiring from the business and so wishes to sell this popular bar.
ASKING PRICE 49 million baht
Restaurant on Pattaya’s famed Soi Buakhao
This popular restaurant is in a top Soi Buakhao location in Pattaya and has recently expanded to double the floor space. The restaurant has been in business for over 4 years and in the past 12 months has seen gross sales reach 4.4 million baht with a net income of 770,000 baht.
All furniture, fittings, fixtures, equipment, supplies, and current inventory are valued at 370,000 baht and are included in the sale. The recent expansion, which costs 300,000 baht, means the restaurant now seats 34 indoors and 12 outside.
The building is set over 91.5 sqm and rent is a reasonable 22,500 baht. The lease is on a year by year renewal basis. There are six full time employees with a total monthly payroll of 45,000 baht.
ASKING PRICE: 3.9 million baht.
Long running Irish pub in Pattaya
This long-running Irish pub is in a very popular area of Pattaya and has earned good reviews for its fun atmosphere, friendly service and good food. In addition to the pub, which offers 70 seats and big screen TVs for sports, there is a six room guesthouse in a two shop-house space. Rent on the space is 71,000 baht a month with rent fixed until 2026. A real deal in this area.
The business has 10 employees with a total monthly payroll of 80,000 baht and has seen sales reach 6 million baht with a profit of around 1.5 to 2 million baht.
The owner is including the Thai company in the sale price. The owner is relocating overseas and so is selling the business.
ASKING PRICE: 2.5 million baht
High-end furniture factory and design studio in Pattaya -includes land
Located in Pattaya, this high-end furniture factory offers not just top quality fine furniture but also full service interior design for residential and commercial projects. The company has earned a reputation for attention to detail, unique and interesting design solutions and high-quality products. Offering a wide variety furniture, including stand alone and built-ins, the company has a full service interior design solution for its customers.
The business has a 600 sqm showroom in a busy Pattaya area and a 2500 sqm factory on the outskirts. The company owns the land and showroom in town. There are 45 employees and the monthly payroll of 1 million baht includes the owners salary. The business is open 6 days a week.
Sales last year reached 50.8 million baht and net profit over 2.6 million baht. The owners have spent a great deal reinvesting in the business including property to continue its growth.
The sale price includes the company with showroom, factory and land
ASKING PRICE: 60 million baht
TAT licensed travel and tour agency in Kanchanaburi
This long established Kanchanaburi travel agency handles inbound tours to the popular province. Holding the valuable TAT license the business is turnkey for the new owner. The sale includes the shophouse with the business. The building is 320 sqm and the buyer will be owning a chanote title property.
Last year’s sales reached 4.5 million baht with a net profit of 1.04 million baht. There are six employees with experience in the business with a total monthly payroll of 80,000 baht. There are several part time tour guides the company can hire freelance as needed.
The owner is now retiring and so wishes to sell the business
ASKING PRICE 11.8 million baht