Weekly Column

Sunbelt Asia Weekly Column 10 May 2019

Sunbelt Asia Weekly Column

10 May 2019

Visakha Bucha Day is a major Buddhist holiday in Thailand, this year it falls on Saturday May 18th. Monday, May 20th is the substitution day for this holiday. This is a public holiday so all government offices will be closed. Sunbelt Asia offices will be closed for this holiday and re-open for business as usual on Tuesday, May 21st.

The Airports of Thailand reports Chinese tourist arrivals are rebounding this year after last years drop, jumping 4.49 percent over the same quarter last year to 38.73 million arrivals. Of these, 23.19 million were passengers on international flights, up 5.30 percent, and 15.53 million were passengers on domestic flights, down 1.20 percent compared to the same quarter last year. Chiang Mai saw the biggest percentage jump, growing 9.26 percent in the first quarter to 3.21 million. Suvarnabhumi saw the second largest percentage jump but the highest total number of arrivals with a 6.22 percent jump to 17.65 million passengers. Chiang Rai saw the third largest percentage jump, growing 5.52 percent to 806,102 people, followed by Don Mueang with a 2.8 percent climb in passenger arrivals and the second highest number total at 10.69 million. Phuket Airport saw 1.09 percent growth and 5.34 million passengers and Hat Yai was the only airport to see a drop with 4.79 percent to 1.01 million passengers. The AoT predicts passenger arrivals will grow 6 -7 percent in total for the year.

The popular app Grab is now expanding into hotel bookings, allowing users to book hotels through Agoda, and soon Booking.com. Customers will be able to pay using Grab Pay and will earn Grab Points that can be used for discounts on other services the app offers. The app will offer Grab users booking through the app free travel personal accident and flight delay insurance as well as special offers on rides. If you already have an Agoda account logging in through Grab links it to the information on your original Agoda app if the phone number is the same.

The MRTA plans on asking the Cabinet for approval of a 230 billion baht budget to expand the Orange Line from the Thailand Cultural Center to Bang Khun Non on the outskirts of Thonburi. It expects to have the line in service by 2026. The organization also plans on asking for 100 billion baht to extend the purple line from Tao Poon to Rat Burana.

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

Sports training facility near 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: 12.4 million baht (BKK15885)

Large pub in trendy Thonglor neighborhood

This new pub is located in the very popular and trendy Thonglor neighborhood. Established nine months ago, the business has already started averaging 2.1 million baht a month in sales with a monthly profit of 400,000 baht. This huge venue can seat 60 people inside and 70 outdoors. Lease on the space is 434,991 baht a month with a 3 + 3 + 3 year lease.
The venue has live music on Wednesdays and could easily be grown further. The business currently employs a Western manager and 19 employees with a total monthly payroll of 280,000 baht. Open from 9 am to 2 am the venue is near the site of a soon to be opened shopping mall.
The owner plans on moving to Phuket and so is including the company with license and lease deposit of 1.8 million baht.

ASKING PRICE: 15 million baht (BKK15883)

Popular American franchise in busy area

This popular American franchise is in a very busy area near a large international university and has been doing brisk trade since its opening in 2014. The rent on the premises is only 15,354 baht a month, a great deal for this busy area of Bangkok, and it has a 3+3 year lease for the 30sm shop that seats 10. The business does close for the school holidays as the trade drops quite a bit. However, the business still saw sales last year reach 2.8 million with a net profit 538,000 baht. There is one full-time, and two part-time employees with a total monthly payroll of 180,000 per year.

The asking price of 3.5 million baht includes all fixtures, fittings, equipment and stock but does not include the US$10,000 franchise fee or the deposit with the food supplier.

This is a great turn-key business with a popular well-known brand in a busy area.

ASKING PRICE: 3.5 million baht (BKK15878)

Software & IT Consulting firm with large client list

Offering software and consulting specializing in Information Systems and Enterprise Content Management, this business also offers product design solutions, international standard technical and engineering resources. It has earned a good reputation and built up a clientele of major corporations in Thailand since it started business in 2015. Currently the company has 60 active well-known clients and 12 clients that pay an annual fee for services.

This business has seen gross sales over 14 million baht a year since its inception and profits from 4.9 million baht and up, gross sales for 2018 are already at 24.9 million baht and profits at 9 million baht. There are four staff, including the owner and monthly payroll for staff excluding the owner is 130,000 baht.

The owner willing to stay with the new buyer for 1 year to ensure a smooth transition and will also offer future support if the new owner wants to create new software. The three major pieces of software that the company owns are valued at 5 million baht each and are included in the asking price.

ASKING PRICE: 30 million baht (BKK15858)

Phuket wood factory & yacht services business

This wood manufacturing business is located in Phuket and produces wooden blinds, kitchen cabinets, garden furniture, flooring, and decking. The business also provides repair and maintenance options for clients and tiling and cement work.

They also offer stainless kitchen fittings and welding services. Additionally the company offers yacht services, repairs, maintenance and boat storage.

The business has a thriving online presence and has been in business since 2005.The business has registered capital of 4 million baht and the premises covers over 2,000 sqm plus a workshop of 550 sqm. Stock valued at 500,000 baht is included in the sale price. Sales have reached 700,000 baht to 1 million baht per month with a profit of 30 percent. There are 15 staff and wages of 200,000 baht a month. Rental fees for boats at the boatyard are 8,500 baht a month.

ASKING PRICE: 6 million baht (BKK15884)

Samui hotel in fantastic Chaweng location

Located in one of the top locations in Chaweng near Soi Green Mango on Koh Samui, this hotel has 28 rooms with four different room types all fitted out with TVs. Catering to all kinds of travelers, the hotel also has 8 hostel rooms with bunk beds and 1 dorm room. Fully fitted out with an elevator, generator, water tanks, storerooms, emergency stair exit, and reception the hotel does have a hotel license. Fully renovated in 2017 the sale includes all equipment, fixtures, and fittings as well as the Thai company and the hotel license. This allows the new owner to walk in, take over the premises with a new name and run it right from the get go.

The owners are selling as they are focusing on their franchise business and are looking to reduce operations on Samui. The hotel has a lease contract through 2031 with the annual rental set for each period.

UPDATED NEW ASKING PRICE: 18 million baht (BKK15841)

Online finance business in Chonburi

This online loan business uses an application for borrowers to apply for loans, and the owner has been running the business herself making small online loans and collections.

The borrower uses a motorbike registration as collateral for the loan and the lender holds the title until the loan is paid, if the borrower defaults the company already owns the motorbike which can be sold to pay off the loan.

Based in Chonburi, this business has a registered capital of 5 million baht and includes the registered business. Anyone with capital can run this business, lending experience not necessary.

ASKING PRICE: 3 million baht negotiable (BKK15877)

Lease & assets takeover of Pattaya A-go go on Walking Street

Located in a top Walking Street location in Pattaya, this A Go Go bar is currently closed as the owner has no time to take care of the business. But the space is good with two storeys and a long 3 + 3 year lease, Rent on the space is 100,000 baht a month. This is a great opportunity for someone to walk into the fully appointed premises and start fresh.

ASKING PRICE: 7 million baht (BKK15882)


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