Property Valuation Service
Real Estate Development
Real Estate Investment
– Investment Consultant
– Rental fees, reconduction, and negotiation consultancy service
– Potential of the property for investment and buy and sell consultancy service
– Adding the value to the property consultancy service
– Property examination before purchasing, mortgage, and selling consultancy service
– Land Acquisition Service
Real Estate Valuation Service We are expertise in real estate such as housing estate, condominium, hotel, resort, shopping mall, office building, dormitory, apartment, warehouse and golf course, etc.
The valuation has been done for several purposes such as sale, purchase, investment, joint venture, land mortgage, land pledge, rent, expropriation, appeal for compensation for expropriation, taxes, division of inherited property, non-performing asset (NPA) of Financial Institution, transfer of debt repayment, and debt restructuring.
Example of works and experiences:
The executives and the team of the organization had accomplished several types of research, surveys, and valuation on real estate property since 1989. The examples are as follows:
• Consultant in Property valuation of Chulalongkorn University such as Mahboonkrong Shopping Center, Siamsquare-One, Digital Gateway, Chamchuri Square Shopping Center, and others.
• Consultant in Property valuation of Central Plaza Ladprao for the project of the State Railway of Thailand
• Consultant in Property valuation of several shopping malls; Zeer Rangsit, Seacon Square, Imperial World Samrong, Royal Garden Plaza Pattaya, and Jungceylon, etc.
• Consultant in Property valuation of Discount Store; Makro and Big C etc.
• Consultant in Property valuation of Esplanade and Community Mall of Siam Future Development Public Company for more than 30 places
• Consultant in Property valuation of the hotel; Four Seasons Hotel Bangkok, Four Seasons Resort Chiang Mai, Four Seasons Resort Koh Samui, Bangkok Marriott Hotel, Hua Hin Marriott Resort & Spa, Marriott Hotels & Resorts hotels in Pattaya, Phuket Marriott Resort & Spa, Merlin Beach, Anantara Hua Hin Resort, Asia Hotel Bangkok, Asia Airport Hotel, Asia Pattaya Hotel, Hilton Bangkok Millennium and Grand China Hotel, etc.
Movable assets such as machinery and plants, office equipment, vehicles, and others.
Other than real estate property, movable property or personal property like machinery can have more value than the real estate property.
Example of works and experiences:
• Canning Industry; Prime Products Industry Co., Ltd., Kuiburi Fruit Canning Co., Ltd.
• Frozen Foods Industry; Asiatic Agro Industry Co., Ltd.
• PVC Film and Sheet Industry; Thai Nam Plastic (Public) Co., Ltd, Polyplex (Thailand) Public Company Limited
• Concrete Industry; Smart Concrete Co., Ltd., Chon Buri Concrete Product Company Limited
• Electronics Industry; Hansol Technics (Thailand) Co Ltd, Thai Samsung Electrics
• Textile Industry; Thai Prasit Textile Co., Ltd., Jong Pattana Co., Ltd
• Structural Steel Industry; Sino-Thai Engineering & Construction Public Company Limited., Eurotrac Co., Ltd.
• Paper Industry; Elite Kraft Paper Co., Ltd., Siam Paper Manufacturing Co., Ltd
• Ceramic Industry; Thai Ceramic Co., Ltd., Sosuco Ceramic Co., Ltd.
• Cement Industry; Samukkee Cement Co., Ltd.
• Fertilizer Industry; Thai Fertilizer Company Limited, NFC Pub Co., Ltd
• Foundry Industry; Stamford Sport Wheels Co., Ltd., Panyaraksa Company Limited
• Tire and Rubber Industry; Thaima Rubber Products Co., Ltd., Hadsyn Latex Co., Ltd
• Manufacturing Industry; SIGMA & HEARTS Co., Ltd., Thai Motor Chain Co., Ltd
• Steel Industry; Saha Thai Pattana Company Limited, Pacific Pipe Co., Ltd.
Intangible property such as intellectual property brand, patent, copyright, and others.
The calculation methods vary based on the given information and format. The overview
methods are as follows:
1. Price Premium Method – The valuation is conducted based on price differential, cost reduction, sales, or profit of the product, compared with the generic brand. The difference derives from market research and estimating Cash Flow Projection within a period and calculating the appropriate rate, resulting in capitalization.
2. Multiple of Historical Earning – a method of valuation based on the previous sales and profit, weighting average by prioritizing the nearest current year and multiplied by multiple potential revenues to get value.จจุบันมากกว่า และคูณด้วยค่าพหุคูณของรายได้ในอนาคต เป็นมูลค่า
3. Stock Premium Method – a method of valuation based on the difference in the valuation of the equity in the stock market. (the average closing price multiplied by the number of shares) subtract by the shareholders’ equity, or total asset subtract by the total liability based on the financial statement. Then estimate the value by considering the weighted average of the current valuation and the past valuation.
4. Cost Method: the method based on considering the development cost in the past such as marketing, advertising, public relation, administrative, architectural, and strategic plan cost, etc.
5. Comparison Approach – compare trading of the intangible property with a similar category (if any) such a Certificate of Sugar Factory, analyzing the market, sales, market share, risk fee, and others.
6. Royalty Substitution Methods – consider value from the ratio of Royalty (or Franchise fee) multiplied by the current total sales, and estimate the Cash Flow Projection during a period and calculate with appropriate discount value, resulting in capitalization.
7. Expert Opinion – the valuation of literature and characteristic property such as painting, porcelains, and amulets, etc. Which required the expert on those specific areas as references.
The following documents or information are the general documents required for the valuation process if some of the documents cannot be provided or have not been processed. We could discuss its necessity and restriction afterward.
1. Company profile, business models, mission and vision, objective, number of executives, and employees.
2. Total sales of the past 1-2 years and financial statement of the past 5 years
3. Initial production details such as selling price, sales volume, and sales location in both Thailand and overseas.
4. Intellectual property such as trademark, copyright, patent.
5. General and operation such as product details, company’s profile and image, organization chart, executives, policies and industrial standards policy and plan
6. The sale consists of product details, sale price, customer base and partner, distribution channel, market share, price policies, sale policies, current and future marketing, and business plans.
7. Real estate and machinery consists of building and machine site (if the valuation is required)
8. Cost of expenses of brand creation from past to current (e.g. cost of legal action process, advertising and public relation cost, administrative cost, and design production cost, etc.)
9. Royalty Fee or Franchise Fee (if any), for franchising business number of previous members and current members, are required.
We providing “one-stop services” consultant including project feasibility study, design & permits, loan requirement, project development planning, Environmental Impact Assessment report (EIA), loans management, marketing & sales management, construction management, transfer of ownership, and post-sales project management (e.g. for condominium projects, housing estate projects, commercial buildings, serviced apartments & apartments, hotels, etc)
1. Project Feasibility Study
Study of Land Title Deeds, land characteristics, and appropriateness to develop the project.
Examples of projects such as housing estate, condominium, dorm, apartment, villa, factory, warehouse, and community mall. We provide consultancy on several aspects such as physical feasibility, law, marketing, finance, and strategy.
1.1 Studying of physical feasibility, land reclamation, and fee
1.2 Studying of public utility and public assistance.
1.3 Studying of transportation, access, environment, etc.
1.4 Studying of location, positive, and negative factors of choosing the location.
2. Legal Feasibility Study
2.1 Studying of City Plan Law.
2.2 Studying of Building control act.
2.3 Studying of related institutes/state agency.
2.4 Studying of Environment Impact Assessment (EIA).
2.5 Studying of special legislation such as housing law, condominium law, dormitory law, and retail law, etc.
2.6 Analyzing the law of land development and potential competitors.
2.7 Reviewing expropriation to avoid the declining of the available lands that might affect the potential to grow in the future.
2.8 Finalizing the law feasibility of project development.
3. Market Feasibility Study
3.1 Analyzing macroeconomics and tendency of real estate business in many aspects such as economic condition and political situation, consisting of macro and microeconomic such as Gross Domestic Product (GDP), inflation rate, exchange rate, stock market index, price of petrol, foreign investment, the tendency of interest rate, population, migration turnover, unemployment rate, overall factors affecting demand and supply, etc.
3.2 Surveying the demand data 1 can be categorized as follows:
A. Studying of population and target group of real estate development by gathering information from other sources such as local population, potential buyers, or foreigner.
B. Studying of the city development plan and “Mega Project” from the public sector to recognize the potential service site in both the short and long term in the future.
C. Studying of development of the private sector or regression of lands such as new industrial estate projects, expansion of industrial estate projects in surrounding areas, or large-scale projects of real estate development in the future.
D. Studying the growth of tourism, the expansion of tourists and accommodation such as hotels and resorts, etc.
E. Studying of the projects near the newly constructed roads and other transportation routes such as SkyTrain and train route that might affect positive growth in the future or the regression of the area such as newly constructed roads might shift the traffic route and affect the traffic congestion in the future.
3.3 Surveying the demand data 2 is to study traffic volume entering the road. For some real estate types that required traffic to run on the front such as shopping malls, petrol stations, etc.
3.4 Surveying the demand data 3 is to identify the demand of customers in detail by conducting questionnaires and focus groups and other types of research. Using sampling methods to gather demand and important data from the target group.
3.5 Surveying the supply data 1 is to observe the market condition of real estate from secondary sources namely government organization and research institute.
3.6 Surveying the supply data 2 is to observe the market condition of the targeted area by gathering data of structural project, building area, number of floors, land for sales and rent, parking lots, number of the parking lot, units, sales units, rental units, types, sales price, rental fee, contractual fee, the payment condition, strengths, and weaknesses.
3.7 Surveying the supply data 3 is to observe the long term strategies of competitors. By gathering the information from the related real estate development organizations including the examination with the public sector. To access the information on the upcoming project of the competitors, its location, the size, and the marketing position, etc.
3.8 Result of surveying supply 4 by using the competitor analysis.
3.9 SWOT Analysis such as strengths, weaknesses, opportunities, and threats.
3.10 Summarize the analysis of project development; the size of the project, building, floors, market position, product, reasonable rental fee, and recommendation of architectural design.
4. Financial Feasibility Study
This study will consist of the analysis of the financial feasibility by gathering data from marketing and the analysis of the financial return as follows:
4.1 Estimated revenue of the project such as rental fee, payment details, other sources of income, etc.
4.2 Estimated expense of project development; the cost of goods sold, depreciation cost, and operating expenses such as legal permission, administration, construction, and taxes, etc.
4.3 Estimated ratio of capital investment, loan, and loan interest.
4.4 Estimated Cash Flow Projection.
4.5 Estimated returns; Net Present Value, Internal Rate of Return, Return of Investment, Return of Equity, and Payback Period.
4.6 Project’s sensitivity analysis, by studying several situations like Most Likely Case, Best Case, and Worst-Case. To understand the possibility of investment in different cases.
4.7 Finalize Financial Feasibility Study.
5. Conclusion of project feasibility
The conclusion and recommendation of project development, project concept, investment value, equity, loan, internal rate of return, net present value, payback period, and break-even point.
● Construction Permission.
● Providing consulting company.
● Preparation of Institution of Electrical Engineers (IEE) and Environment Impact Assessment (EIA) reports.
● Professional architect designing service
● Housing estate, condominium, apartment, and hotel project
● Consultation agency for IEE and EIA report scoping service
● Architectural design
● Structural Engineering design
● Sanitary Engineering design
● Electrical Engineering design (e.g. CCTV)
● Mechanical Engineering design
● Interior layout plan
● Coordination with architectural design, structural engineering design, and other engineers. (e.g. mechanical, sanitary, electrical )
1. Procedure of basic service (conceptual/schematic design)
● Examination of the project’s location’s condition.
● Site Plan – showcases the relationship between the buildings within the project and the surrounding areas.
● Drafting of plan, elevation, and section
● Drafting of perspective
● Important documents such as utility space of building and duration of project design process.
● The estimated price of construction
● For this process, we will deliver the work to the project owner in the format of one set of hardcopy (A3) and one set of the compact disc (CD).
2. Design Development
The process of the final draft, the design process, and adjustment will be following the project owner, which is academically appropriate and meets the architectural professional standard.
● The site plan showcases the relationship between the buildings within the project and the surrounding areas including the important public utilities.
● Drafting of the buildings which consists of plan, elevation, and section.
● Drafting of the structural engineer, electrical engineer, mechanical engineer, ventilation engineer, and sanitary engineer system.
● The details of the required materials and equipment for the project.
● Perspective for consideration.
● Estimated price based on the development plan.
● For this process, we will deliver the work to the project owner in the format of three sets of hardcopy (A3) and one set of the compact disc (CD).
3. Construction Documentations
Detail of architectural drawings and construction.
3.1 Permit Submission Drawings
● Architectural drawings
● Structural engineering drawings
● Electrical, mechanical, ventilation, and sanitary engineering drawings
● List of structural estimation.
● List of engineering estimation
● Copy of certificate and signature of the architect, structural engineer, and system engineer (exclude signature of process control).
● Preparing hardcopy (A1) following the requirements of the government agency for the permit of constructing buildings with the government agency in Bangkok.
■ For this process, we will deliver the work to the project owner in the format of one set of hardcopy (A3) and one set of the compact disc (CD).
Five designs and price tender documents are being prepared. Should there are further requests, the documents and printing require payment.
● Preparing the documents for price tender.
● Consulting of price offering.
● Consulting in choosing the contractors.
● Assisting the preparation of constructing contracts.
5. CONSTRUCTION PHASE
● Inspecting construction at the site and organizing monthly meetings to report the progress to the project owner (if required).
● Additional details of construction (if required).
● Providing suggestions for design permission and sample equipment proposed by the contractors.
● Consulting and guiding the manager of the project.
● Consulting of the inspection (if required).
Development of housing and land in Thailand.
Service cooperation with related agencies, providing related documents for land allocation, cooperating with related land agencies.
Permission of land allocation will be proceeding under the Land Development Act, B.E. 2543, “the applicant is required to filing the land allocation application to the officer of the state agency or the officer at the branch of the filing land address”
Land survey service and contour service in Thailand
Offering land survey service proceeds by the certified private surveyor to identify the detailed area of land for developing the project development plan, for designing purpose, etc. Offering contour service for construction designing plan and the land use management.
The second-handed property, property from the legal execution department, financial institution property, and other property are what the common people or the salaryman can invest. However, should you not fall into the “lifetime trap” even though the return on equity of the investment may be two-fold. Normally, the return from bank deposits is extremely low, and people who have their property do not know how to gain profit from it. So, when buying a house, do not buy it because you deserve it, but think of it as an investor. Since buying a house could become a “lifetime trap”. For all the people out there, is it true that you can essentially invest with your “own hands”? what can the real estate owner do to increase the value? Real estate would bring the opportunity of wellbeing and knowledge for the student, college student, and children of the villagers. It is the only way for the working class like us to build the status in this society, “nothing good comes easy, investing in real estate is not easy, but it may not exceed the capability of those who seek to learn”. A great economic crisis is a great opportunity to invest in real estate.
The process of negotiation and lease extension is essential for the owner of the property who desires to rent out. Since it could potentially increase the rental fees by many folds, the service involves the studying of utilizing the land use potential, business potential, understand the rentee, the value of the property, and rental property in 1 year, 3 years, 5 years, 10 years, 15 years, 20 years, 25 years, and 30 years. Also, the studying of the premium fee and the appropriate monthly rental fee to increase the investment opportunity and taxation benefits. As well as the studying of the potential land development or the use of the property from current to future. And, the studying of the related law that may affect the value of the land from the current to the future. For example, City Planning Act, Building Control Act, Retail Act, Environmental Act, etc. The studying of eminent domain projects such as road expansion, frontage road, overpass, roadside, or other special projects that potentially create a positive or negative impact on the land in the next 5 years. The studying of the construction permits and the jointing road at the entrance of the land in order to construct on the land. The studying of the market potential in terms of utilization in order to understand the realized valuation of the land. The studying of the negotiation method for higher rental fees than the market referencing to the potential of land use and business operation.
The land with the purpose of investment, buy and sell, development, sale, and renting, even if the lands are the same, if, for different purposes, it may have different prices. Some parcels of land should sell at a higher price. And, some should sell at a lower price, otherwise, it may be difficult to sell, and the valuation of the rental fees, rental cost allocation, land lease fee, and tax are essential for deciding whether to sell or to rent out. By determining the actual potential of the land, it will result in knowing the actual value of it. Since, the land in the same location may have different potential due to several restrictions such as physical characteristics, legislation restriction, and market potential which would affect some parcels of land is more expensive than another. Some parcels of land may have to sell at a lower price due to more restrictions; vastly people may not be interested if selling at market price. So, by knowing the actual potential of the land, it will have a huge benefit in selling, developing, or renovating for use, etc. By knowing the potential of the land, the appropriate price can be set and it will result in renting out faster, satisfy the target market, estimation of land lease fee, annual or monthly rental fee, the related taxation, assisting with the negotiation, and signing the contract.
The studying of improving the property by thinking outside the box which may result in unexpected revenue. By adding value to the property, it would expand the stream of income when selling and create more benefit, by also using the concept of adjustment of use, alter the use, and request the permission correctly, to add more value, and using the concept of thinking outside the box which could potentially create tremendous revenue. People are shifting the focus to installment payment instead of renting the property due to cheaper price, if the Thailand market is continuously hoping to buy the property and renting out, it may take years to accomplish. But, if the interest rate is high and the rental market is at its peak because people can not afford the property. The renting out property like apartment and dormitory may be in a bad shape and the rental price has to drop due to more people shifting the focus to buying the property instead of renting. Even if some markets offer low-interest rates, people still are not buying and renting it. In this case, the professional can teach you how to manage the sale and which market to focus on!
To prevent unforeseen situations such as purchasing the wrong house, the wrong parcel of land, the documents related to the land are missing before purchasing, mortgage, and selling process. These can be prevented by examining the fact of the property to prevent the problem (before purchasing) such as the land in the reserved forest, an illegal land acquisition which may result in revocation of the land title deed because of the unmatched acquired land and the registered land title deed (purchase wrong parcel of land or house), adverse possession land (legally taken from the people, but conflict might arises later). Some parcels of land may have huge differences in price even though they are located on the same road and the same beach. This is due to the legislation restriction on the construction potential. The examination of the building construction permission, the floor plan, building condition, budget, repairing, building extension (e.g. faulty extension), and the building permit (e.g. construction does not meet the permit). The examination of the building condition such as cracked walls. The examination of the right of the license, the general restrictions, development concerns, the right of going in and out the building, expropriation, or other evictions.
For developing the housing estate, condominium, apartment, etc. For investment, buying and selling, rental, land acquisition, finding landowners, for buying and selling, rental, investment, etc. The land acquisition with choices of the parcel of lands, for the benefit of negotiating, land potential examination, and the legislation affecting the construction on the land. The examination of the actual price is based on the land use requirement. The examination of the potential appropriate land use under the law such as when purchasing land in the hopes of constructing a building with 10 floors, may be restricted to only 4 floors or 8 floors depending on the legislation. The examination of the market potential of the land of the current and future assets to understand the growing trend of location that might affect the potential of the land in the future.