Sunbelt Asia Weekly Column
17 August 2018
MICE (Meetings, Incentives, Conferences, and Exhibitions) travelers from China to Thailand have surged this year, growing 35 percent year on year. The fiscal year for the Thailand Convention and Exhibition Bureau (TCEB) ends in September and the TCEB reported that in the first three quarters (October 1, 2017 – June, 30, 2018) Thailand welcomed 134,754 MICE visitors from China. The previous fiscal year saw a total of 153,312 MICE visitors. Based on advanced bookings, the TCEB predicts the number will reach 168,643 for the full fiscal year, generating income of 14 billion baht. China, India, and Singapore remain key targets for MICE events as Thailand is a reasonably distant, central short-haul destination. The top 10 long-haul source markets in 2017 were the US, Australia, France, Britain, Germany, Italy, the Netherlands, Sweden, Spain and Belgium. For fiscal year 2018 the country expects a total of 1.32 million business travelers generating 124 billion baht in revenues.
The new Land and Buildings tax may see implementation delayed again from the scheduled start of January 2019 as recent rehearsals with Land Department officials found most were not ready for the new regulations. Implementation of the tax was also delayed when the National Legislative Assembly (NLA) standing committee extended the scrutiny process for the eighth time until the end of September. The bill has been stuck in the scrutiny process since it was passed in March of 2017. The NLA committee had already lowered the proposed Finance Ministry taxes with the ceiling tax rate for homes of 0.3 percent (down from 0.5 percent), the rate for agricultural use dropped to 0.15 percent (down from 0.2 percent) and the rate for other used and undeveloped land to 1.2 percent from the proposed 2 percent. The committee also dropped rates for houses, offering a first-home exemption threshold of 50 million, up from the previous 20 million baht while homes above 50 million will be charged .03 – .05 percent. The Finance Ministry is also considering cutting the 2 percent ownership transfer fee to .01 percent.
The Ministry of Commerce predicts that by the end of the year 80,000 new businesses will be registered with the Business Development Department. There have been 43,500 new businesses registered since January, and nearly 6,000 in July. The total amount of capital registered in July was 26.354 billion baht. The rise in new businesses is in line with government’s infrastructure development policy, with most of the new businesses in construction and real estate.
The Securities and Exchange Commission (SEC), the Stock Exchange of Thailand (SET) and Thailand Securities Depository Co Ltd (TSD) issued guidelines for shareholders enabling them to convene a shareholders meeting when company executives refuse to do so, this is in accordance with Article 100 of the Public Limited Company Act of 1992 according to the SEC press release. Shareholders will need to inform the TSD of the closing date of the book of shareholders’ registration and the date of the shareholders’ meeting and will have the right to immediately request a copy of shareholders’ registration as proof of share ownership from TSD. The TSD will prepare the documents and send invitation letters to all shareholders but they are required to pay the TSD in advance. The release said that this should “Support the use of shareholders’ right to collectively resolve problems which can arise and help businesses proceed with their operations.”
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Hot Chaweng bar in top Samui location
Located on the hottest nightlife street in Samui on Chaweng Beach this bar and grill is fully equipped with a fully fitted out kitchen, full wine storage area, a ground floor bar and another bar on the third floor with a full DJ booth hanging off the wall with full sound and music equipment.The fourth floor is currently a storage area but could easily be converted into a VIP lounge.
There are also offices and a store room as well as the IT center with all controls. The business is a well-known and popular bar and the sale includes the lease in an amazing location in the heart of Chaweng as well as the brand name and Thai company if the buyer requires purchasing a company. There is no debt on the company and it is only registered to this business.
All fixtures, fittings, and equipment is included in the sale including top quality stainless kitchen and equipment, all DJ equipment and lighting, and the huge wine cellar holding over 300 bottles of wine. The bar is a huge draw with the younger crowds, there is also a small room next to the ground floor bar which is part of the sale, this can be used as a store; previously the space was rented out for 20,000 baht a month. The owners are selling as they are focusing on their franchise business and are looking to reduce operations on Samui.
ASKING PRICE: 1.2 million USD or 39 Million baht
(BKK15844)
Online health food business
This online health food store is one of the most well-known in Thailand and has earned a good reputation for providing high quality superfoods, and raw and organic foods and products with delivery around the country and worldwide. The website is quite extensive and has a great modern design with built in check out system and secure payment.
This business has huge potential growth as the health food industry takes off in Thailand. The new owners can run the business from their current location with no need to relocate since it all takes place online. The company has been in business for four years and the current owners expanded it and updated the website after taking ownership one and a half years ago.
The owners wish to sell for family reasons.
ASKING PRICE: 1.85 million baht
(BKK15709)
Rayong based construction contracting business with land
This construction contracting business offers services across the board including metal fabrication, insulation, construction and manpower. The company has been in business since 1997 and has earned a good reputation for quality work and has many large companies as customers including those in the gas, oil and chemical fields. This is a good business for someone looking for a turn key business that has a steady stream of customers.
The business is well-run and has 40 experienced full time employees with a total monthly payroll of 900,000 baht. Sales last year reached 50 million baht and net profit is around 10 percent. The company is established in the busy area of Rayong and the 10 rai of land the business is on is included in the sale. The land is market valued at 15 million baht.
The owner is moving back to his home country and so is looking to sell this well-established ongoing business.
ASKING PRICE: 33 million baht
(BKK15703)
Long-running Pattaya pub
Located in a popular area of Pattaya, this long-running Irish pub 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: 5 million baht
(BKK15833)
Ratchada executive apartment building with land
A rare gem in Bangkok, this executive apartment building is located in the heart of Ratchada and and only a ten minute walk from the MRT Station but also includes not just ownership of the building but of the 200sqw land the building is set on. The apartments have high occupancy reaching 98 percent all year round. There is a gym and elevator and a regular steady clientele of residents that work in nearby offices. Sales last year reached 12 million baht with a profit of 8 million baht.
The value of the land and building alone are over 80 million baht. The owner is moving overseas and is forced to sell this profitable business.
ASKING PRICE: 210 million baht
(BKK15760)
Large hostel in Bangrak neighborhood
In the popular Bangrak neighborhood, this hostel has 90 beds in 20 rooms with an in house café. Potential for this business is quite high but the owner is not able to manage on site, an active manager on site could easily grow this business as this is a popular tourist area and the hostel concept remains popular with travelers. Payroll is currently 100,000 baht a month and rent on the location is 151,750 baht a month with a 9 year lease.
All assets are included in the sale including furniture, CCTV, website and online booking system.
ASKING PRICE: 9.5 million baht
(BKK15810)
Silom area fitness center
This popular fitness center is located in the busy Silom area, not far from the MRT and BTS stations. This well-equipped center offers the latest in Pilates, yoga, yoga fly, Zumba dance, aerial hoops and piloxing; all the latest and most popular trends in yoga and fitness. The business was established in 2015 and has an active social media presence with channels on Facebook, Instagram and others.
The center has a large 200sqm space with good views over the city. Rent on this prime location is 87,500 baht a month. There are 20-25 part time teachers at the center The fitness center currently has more than 1,000 members of which 295 are active The center has an up to date booking system and profile database of the members well as a mobile phone app. Sales last year 5,800,000 baht. The sale includes all fixtures, fittings and equipment as well as a company with enough registered capital for one work permit.
The current owner, who has owned the business for over a year, has plan to move to abroad with the family. The business could easily increase sales and profit with an owner with more time to dedicate to the business.
ASKING PRICE 2.75 million baht
(BKK15815)
Well-reviewed Sukhumvit restaurant
Located in a busy Sukhumvit soi, this restaurant is well-reviewed on Trip Advisor and has garnered good word of mouth with locals, expats, and tourists. The owner is looking to sell the brand, equipment, and will train the new owner in all recipes.
There are six service staff and six kitchen staff including the chef, who will stay on to work for the new owner. The 200sqm restaurant can seat up to 60 people and rent on the space is 200,000 baht a month. The current owner has a 3 + 3 year lease that expires in 2019. There is a parking area available as well. The restaurant has room for an office and an area with lockers for the staff. The fully fitted out kitchen is designed to cook both western and Thai food.
Sales last year reached around 12 million baht with a profit of around 30 percent. The owner is looking to sell as he travels for his overseas business too often to manage the business.
ASKING PRICE: 5.5 million baht
(BKK15826)
