Peter Parfait & Scott Huggins’ Special Situations Syndicate
In existence for over a year now, our property investment syndicate goes from strength to strength. Qualifying individuals having injected several million euros into our Special Situations vehicle, we have made exciting and rewarding and profitable investments.
‘Special Situations’ was launched at the end of 2006 to great effect. Investors are already benefiting from our unique positions in both the property and media worlds. We possess a vast network of trusted industry contacts in our respective fields who are being encouraged and are happy to play a part in our endeavour.
We have injected funds into a Turkish project that is conservatively projected to yield 40% pa. We have invested £100,000 in an exciting commercial project in South Africa with a massive projected return of 500% over 24 months. We are also working on an innovative new property information concept with projected speedy returns of several hundred percent, at minimal risk. Together with being approached by a British entrepreneur with a fabulous new property project with huge potential, over which we are now performing due diligence. Plus, a chateau and villa development in northern France where we can market 50 new-build holiday homes at zero risk.
Also, we’ve just produced a series of DVD interviews with property professionals from the UK – over 4 hours of professionally-produced fascinating insight with 12 industry gurus on a 3-DVD set - which we trust will be educative, informative and entertaining. And we’ve negotiated a marketing and distribution arrangement with trusted colleagues to capitalise on this concept for the benefit of the syndicate. Details will be available shortly, with syndicate members receiving a free copy each, and before anyone else.
Most exciting of all is that we have secured a joint-venture project on a resort development on the delightful Gulf of Thailand island of Koh Phangan (right next to Koh Samui) to build a hotel, spa, watersports and villa complex with projected hands-free returns of £6million for only a £1m-down investment (£3million of sales, plus a retained £3million hotel). Further details below. Completion is set for December 2009, although we confidently expect to have sold all the units off-plan well before then.
Both myself and Scott continue to travel widely, globally, to investigate further profitable opportunities for Special Situations Ltd.
Only Syndicate members can benefit through both capital returns from the projects we undertake and also via the purchase of discounted properties that we build (offered to members first at a substantial discount to market value).
The minimum investment required is only 50,000 euros – which you’ll almost certainly get back from the first discounted off-plan property deal we bring to you. Oh, and the profit split in favour of members has been considerably increased.
For further information and an application pack all about our Special Situations Syndicate you are required to join The Intrepid Syndicate Club. The Intrepid Syndicate Club is only open to qualifying High Net Worth Individuals and Sophisticated Investors. Becoming a member couldn’t be easier, simply join us online at www.intrepidinvestments.co.uk/members/index.asp enter the code SSS01 and if you click on "Join Now" you will receive your first years membership for only £1 (inc. VAT) saving over £500.
Here’s detail of our latest investment:
Peter Builds A Resort
I am very pleased to be able to report that the development of our tropical paradise holiday resort is now well and truly underway. This is something I’ve wanted to do for a long time – purchase, master-plan, finance, develop, market and manage a holiday resort and hotel complex overseas – and now we’re actually doing it, which is tremendously exciting and great fun, not to mention extremely lucrative for fellow investors in my personal property investment syndicate.
It all started in the summer of last year with talk around a table about Thailand being a real hotspot for property investment, not only for westerners taking advantage of low prices and 48-week rentals, but also the Asian tiger states considering it to be as appealing as Spain is to Europeans. The tiger economies are still booming, with burgeoning middle classes appearing in China and South Korea in particular, focusing their holiday intentions on Thailand, which is causing to enhance capital growth and yield prospects.
And having visited previously myself, and loved it, and having witnessed other people’s Thai property stock fly out the door, it altogether seemed sensible and logical and felt instinctively ‘right’ to build there. But where exactly?
The jewel in Thailand’s crown, as many of my readers will undoubtedly know, is Koh Samui, and frankly the island takes some beating. I have 2 properties being built there (at Tropical Hills and Himmapan) and I know that many of you also have taken the investment plunge in the north of the island, around Bophut. And I know very well that we’re all going to be exceptionally pleased with our purchases/investments. We’re going to enjoy using them, for completely free fun-filled holidays, benefit from significant capital growth, and live happily as the years go by on an ever-increasing rental yield way into retirement. I used to be able to show people how to buy property in the UK from a standing start and retire in under 5 years. I can’t do that today. But I could show you how to do it by buying property in Thailand.
So Koh Samui is amazing. It has everything you could possibly want from a holiday destination: all-year temperate climate, only 1 four-week rainy season, lush tropical flora, exciting and curious fauna such as elephants and lizards, but no great nasties in the sea, no bugs to speak of, great food and nightlife, beaches to yourself, fascinating culture, wonderfully pleasant and gentle and accommodating people, bundles of things to do, everything is cheap, and there exists a never-want-to-leave atmosphere. But I desired all this … and more.
I also wanted to be adventurous and pioneering. So I’m not building on Koh Samui, but on the neighbouring island on Koh Phangan, which is the large island that you can see across the Gulf Of Siam from Bophut beach.
Investing Ahead of the Curve
Not so many people have heard of Koh Samui’s younger and more beautiful sister Koh Phangan (pronounced "Co-Pan-yang"), but this looks set to change.
Like all good-looking younger sisters, Koh Phangan gets plenty of opportunities to shine at parties, and for over 15 years she has been home to the world famous monthly Full Moon Party held on Haad Rin beach, just opposite from Bophut on Samui. This event ensures the island’s hotels are full for one week in four, as the party goers from as far afield as India, Hong Kong and Singapore make their way to the event, which is a truly awe-inspiring spectacle (imagine a boutique Glastonbury Festival taking place on a beach … every month.)
However, Koh Phangan is not just about wild beach parties. The island is an eco-tourist and dive destination, with its many beautiful beaches and coral reefs, together with a more laid back atmosphere than the mainland or even Samui. Yet over the last three years there has been a huge increase in tourism, with visitor numbers set to approach the 500,000 mark, up from 200,000 in 2003. Hence my interest in this location as a resort development destination: it’s ‘on the up’, yet has a long way to go, but already there’s significant and unstoppable momentum. All I want to do is ride the wave.
Opportunities for investors on Koh Phangan abound as the island benefits from Koh Samui’s popularity, yet is still 4-5 years behind the curve when it comes to prices. Think Ras al-Khaimah in relation to Dubai. Whilst Koh Samui has numerous housing developments, many of which have been previously featured in this organ, Koh Phangan has very few. In addition to this, accommodation on the island, whilst improving all the time, is still basic and in short supply, thus those investors who are able to provide visitors with higher-end accommodation will benefit from high occupancy rates and yields. In fact one of the features of Koh Phangan is that yields are superior to those on Koh Samui, because of the supply/demand imbalance.
Haad Khon – Our Very Own Boutique Sanctuary & Spa Resort
Haad is Thai for Bay and, as its name suggests, Haad Kohn is located directly on the beach (see aerial image on page 2). It is situated at the northern end of the island, close to the fishing village of Chaloklam (set to become the Bophut of Phangan, for those who know Samui), and one of Phangan’s most famous beaches, Haad Kuat or Bottle Beach.
Our own beach of Haad Kohn is fronted by a live coral reef, which protects the shoreline and a golden sandy beach, featured with large granite boulders. The resort enjoys approximately 7,000 sqm of absolute beachfront land and 12,000 sqm of hillside sea view land. Intersecting the two parcels is the beach road from Chaloklam to Bottle Beach. Currently this is still a dirt road (though government maintained) and the cutting through has yet to be finalised. However, the concrete road is now only a few hundred metres away and the whole of this area is set to open up within the next two years.
Our resort development consists of approximately 16 mini pool villas situated on the beach, and a 30-room boutique spa hotel running at the four star level. We propose to use the spa as one of the main selling points, with a range of body and mind treatments.
On the hillside behind the resort we are to build 44 one-bed and 44 two-bed
apartments suitable for family and couples. These will be built to three-star standards with kitchenettes, large balconies and en suite shower rooms.
Our sales strategy is to sell out the mini villas, which can be leased as hotel suites from the hotel, and to sell out the apartments, also to be sold for rental income through the hotel, whilst keeping the core hotel and management business for an income stream,.
The project is expected to deliver to the investor group an IRR of 64.8%, a cash profit of £3,000,000 plus a retained value of the hotel business of £3,000,000, based on occupancy rates of only 65%. The hotel is expected to annually net approximately £445,000 in room and apartment management revenues as an ongoing income stream for the investor group. Thus, roughly, we are turning a £1,000,000 investment into a £6,000,000 profit.
But that’s a conservative estimate; we’ve already started cutting costs. For instance, we have managed to cut professional fees down by 40% from the original estimate, on which the above projections are based. One way in which we expect to make further big savings is by controlling the bill of quantities. This is normally handled by architects, and of course is the basis of the fixed price agreed with contractors. We are therefore, along with the project engineer, keeping a firm grip on the BoQ, so as to avoid the architect getting carried away!
Having held meetings with three architects, we have settled on a young Thai practitioner with an impressive portfolio who is ambitious to win a European-sponsored project. The deal he has agreed to on fees will save the project plenty: his fee will be based upon 5% of the build cost, with the build cost being based upon 11,000 THB (Thai Baht) per square metre. The norm for Koh Phangan is 9%, based upon a build cost of THB25,000 per square metre! Furthermore, the architect has agreed to stretch the payments out in thirds over the course of the project. He will produce a Masterplan this month, which we will then go through to make sure the designs are optimized, so that the whole thing will work as a highly profitable resort hotel.
Furthermore, agreement has been reached with the local Thai planning office to ensure that the soil, water and topographical surveys are carried out within six months - the norm being two years! The permissions required for roads and building will also be granted within this period.
Agreement has also been reached with Adam Clarke, engineer and project manager for Cool Blue Samui and also The Reference, to be the overall project manager, with Tom Green, whom I have met and seen his work, being the on-island project manager. These guys are undoubtedly the best around and have also agreed to stretch their fees over the project, because of the goodwill built up with our project joint venture partners.
We also now have a source that will produce a video walk-through of the resort for just a few thousand pounds, and that will be available for my readers to view early in the new year.
Indeed, I intend to follow this whole development through for you in HPA over the build period, because I hope that you’ll find it as fascinating a process as I do. As long as you work with the right people, those whom you can trust, who have contacts and experience on the ground and in the area, it’s not rocket science to build and profit from a resort development on foreign shores.
And not only will you learn from the process, but you can profit from it too. Yes, you can have a piece of this action, without a shadow of a doubt. You can sit back in your armchair and reap the rewards of the project without necessarily leaving your seat or street. You can benefit from our cost savings, our contacts, the capital growth through the build process, and you can even turn your profits in tax-free property. But more about that later. First, please allow me to detail my impressions of Koh Phangan.
My Personal View
Our on-island Project Manager is Tom Green, a Brit who relocated to Koh Phangan some years ago. He lives there and he loves it, rarely re-visiting the UK, and I can exactly see why. It really is an ideal part of the world to settle down, do business, holiday, holiday repeatedly, holiday permanently, and never return. Could I see myself living there? Er … yes. Without a doubt in my mind.
My visit took place in August '07. It was a bit of a whirlwind stopover, but I got to see an awful lot. I was in North Carolina and travelled overnight to Heathrow direct from Charlotte, arriving at 6am in the morning. A quick nip to the office to sign some papers, a couple of central London meetings, and then I was back out to Heathrow for the 9pm flight to Bangkok. Not having had much sleep on the economy red-eye flight from the States the night before, it didn’t much matter, because I’d found a half-price first class seat on Thai Airways and slept like a baby, waking up in Thailand totally refreshed and completely jet-lag free.
I then flew to Koh Samui (about an hour), which I know well, and adore, and on by speedboat to Koh Phangan. We toured the whole island, taking in the famous Haad Rin ‘Full Moon Party’ beach, stopping off for lunch at a sleepy fishing village to experience the cheapest and freshest and most phenomenal food, exploring a myriad of deserted little islands and completely uninhabited beaches-to-die-for along the way, and subsequently a trek through the centre of Koh Phangan to witness how modern and vibrant and well-equipped are the towns, full of boutiques and provision shops, medical centres and, yes, even a Tesco’s! And then a boat trip to our own Haad Kohn beach. You can see my photos of the trip here:
www.flickr.com/photos/12714958@N04/sets/72157603259138734/detail/
I was blown away by the breathless beauty of our beach and tropical jungle development land. The water is clear and cool and calm, being bordered by its own coral reef, ideal for snorkelling. The beach itself is featureful, with massive boulders forming natural shade and adding wonderful charm and character. The development land behind is full of coconut palm trees (most of which will be retained), and slopes at the perfect pitch for our accommodations to enjoy spectacular open views and to afford them infinity pools, yet without being burdensomely steep. And the little narrow track that divides the land leads to a truly awesome village no further than half-a-mile away with facilities on tap, and shop and restaurants and activities galore, and all for much less than you would expect. It really is a paradise on earth. And we could not have been more fortunate to be destined to build in this glorious location.
More details soon, as we begin the build process and I’ll lead you through from start to finish. That’s if you simply wish to observe and learn.
Join With Us & Profit!
If, however, you wish to profit from our endeavours, then by all means climb onboard, because if you join my Special Situations syndicate, which I partner with Scott Huggins of Intrepid Investments, then you can share in the rewards, which includes the significant profit we intend to achieve and discounted property available to all members. And remember that this is but one of the many investments we are making to turn your small investment capital into large returns. The entry level is only €50,000.
Save An Immediate £500!
For further information and an application pack all about Peter’s Special Situations Syndicate, you are required to join The Intrepid Syndicate Club. The Intrepid Syndicate Club is only open to qualifying High Net Worth Individuals and Sophisticated Investors. Becoming a member couldn’t be easier, simply join us online at www.intrepidinvestments.co.uk/members/index.asp enter the code SSS01 and if you click on "Join Now" you will receive your first years membership for only £1 (inc. VAT) saving over £500.
Peter Parfait
Artist’s overview of Peter Parfait’s boutique spa sanctuary and resort property development on the glorious island of Koh Phangan, Thailand, now underway. Simply observe the process for your information, or join with Peter and reap the significant profits in concert with others.
Here’s a digital aerial view of where Haad Kohn lies in relation to the rest of the island of Koh Phangan. It really is a perfect location, with its own sandy beach and protective coral reef. How much more ideal does a development site have to get!
Architect’s impression of how a finished pool villa will look. Designs are by a top Thai practitioner keen to win a European-backed contract, and thus standard fees have been slashed by some 40%.
The beachfront Clubhouse at Haad Khon, in a beautifully modern design, with infinity pool. Koh Phangan is seriously short of good accommodation. Our significant profit is based on only 65% occupancy, but, given the quality we are about to create, we should achieve very much better than that.