Beachfront Resort Development in VietNam -60% Equity Participation| Property Group | Commercial | | Property Type | Other Commercial Use | | Lotsize | 60.00 acres | | Price | US$ 4,400,000
For Sale |
| | Location | Song Cau District | | Nearest City | Song Cau District |
|
BASIC DETAILS:
Property Boundaries:
north to coconut garden,
800m from sand through the palm trees inland.
South to sea East to Toi Mountain(hill)
West to Doung Mountain(hill)
Sea surface 1km from shore
Area of Development: 25 ha. aprox 60 acres
3000 foot of beach front before land acreage (large bay)
850 foot of beach front before land acreage (small bay)
General Marketing Observation
Through multiple trips and analysis of market potential, the Development Team has determined that a niche exists for a relatively small development on the South Central Coast of Vietnam to serve the high end Eco-Tourism market. Additionally, the development is to be designed in Phases with the intent of being a self supporting cost structure as the development grows. Analysis has shown that most current resort/vacation developments in Vietnam are on a much larger scale (in excess of USD 20MM). Due to the relatively low occupancy rates required to support these facilities and low development costs, it seems to have been the goal of most developers to seek larger resort facilities.
Of course, we see a glut of these developments in the cities near Nha Trang and Danang, our major market competition to the north and south. Additionally, we have seen the delays in these developments due to lack of market support and financial restrictions. The development the team has designed has Three (3) Phases. Each supports the other financially and each serves a particular market niche within a segment of the Eco-Tourism trade. Additionally, a travel infrastructure already exists to support our market including a close proximity airport, sea transportation, and road friendly travel. Property layout consists of 38 acres which include a large bay and small bay protected by rising mountains extending out to the water. Beach frontage is nearly 1 mile long. Photos accompany this website synopsis
Phase One Market Strategy Overview
Phase One consists of developing the high end residences on the water of the small bay. It is estimated that we would develop 6-10 units with 2-3 units being 3 bedrooms. Costs of this development and maintenance are relatively low as outlined in Phase One Cost Evaluation. With very little impact to the environment and the fact that there are very little supporting or tourism structures within the vicinity, this Phase would be marketed to high end U.S.A. Investors seeking exotic tranquility and privacy.
On site supporting structures would include a small restaurant, bar, pool, hot tub, and small spa facility. It is the intent of this Phase to offer a quiet, serene, and natural setting while having the luxuries of a 5 star resort. Personalized service would be established through our local property management team that is already in place. Services include, if desired, personal chef, driver, tour operator, and staff. All of these would be listed as upgrades with the intent of letting the guest create their own adventure. A list of amenities would be provided, including an activities list, to the resort guest and these amenities would be above and beyond standard resort villa rates. Additionally, these guests would have full use of the larger beach as a private enclave.
Phase Two Market Strategy Overview
Phase Two is a continuation and support of Phase One. Key markets include those that desire the Eco-Tourism experience at a more reasonable cost. Tailored more to 4 star, these individuals are identified as followers of the innovator group seen in Phase One. Many times, this group needs to see established facilities for comfort and a little less roughing it. Most would be identified as younger families and couples looking for an adventure.
Phase Two provides for the development of an additional 10-15 land based villas of 1 bedroom size with 2-3 being reserved for 2 bedroom sizes. These would be provided at a lower cost than the pristine, Phase One development. Additional support facilities would be provided as well including a socializing area, additional pool, and additional bar. In addition, the larger bay would be available and established as a private beach. Activities would be expanded to include: diving and snorkeling, rock climbing, hiking, fishing, and water sports (boating & wave runners). These acitivities would be offered as an integral part of the Phase Two. The two phases can now support this full time amenity addition from an investment perspective. Working capital generated by Phase One would aid in lower development costs of Phase Two. Additionally, Phase One allows the surrounding community to grow with the development. The influx of capital into the area will spur investment into resort supporting structures like restaurants, bars, local shops, etc. This is evidenced by similar patterns in the cities of Nha Trang on a large scale and Phan Thiet on a smaller scale. Opportunities for amenity expansion abound with the development of the second Phase. These additional profit centers create additional working capital to help fund Phase 3. This also helps to increase occupancy of the Phase Three development.
Phase Three Market Strategy Overview
Phase Three is the largest of the development phases. It is developed solely on the large bay with the intention of keeping it separate from Phase One & Two both geographically and in market strategy. The landscape provides for a natural separation and accommodates our plan entirely. Phase Three consists of 25 one bedroom units. These (3) would be designed with common walls and all would have ocean view. Additionally, support centers would be created to support this facility. Additional restaurant, two pools, massage center, socialization area, 2 bars, internet cafe and casino. Key market to support this Phase include coastal travelers. Those coming down the coast from Hanoi en route to Ho Chi Minh. This market has been found to get the most for its money. These are usually first timers to Vietnam and wish to experience as much as possible within their limited vacation time. They normally travel through with the intent of staying 1-2 nights before heading out to the next city.
The Phase 3 units are the lower cost rentals of the 3 Phases. The draw to this Phase is threefold: 1) Lower Unit Cost , 2) Coastal proximity and 3) addition of casino. The lower cost unit is self explanatory as it is the most cost effective of all phases. Room costs will be slightly higher than comparables along the lesser developed coast. With regard to proximity, we have a distinct advantage. There is very little development between the two (2) resort centers of Danang and Nha Trang. We are located approximately 8 hours travel from Danang and 4 hours from Nha Trang. This allows for a logical layover for the coastal traveler. In addition to help support the decision to stay with us, our small casino will aid in the draw of consumers. When given a choice of stopovers along the coast, our negotiated casino rights will offer us a competitive edge. It is our intent to market this Phase to the local tourism groups and feeder programs.
SUMMARY;
Base Development Costs Per Phase:
Phase One Development Cost: $USD 1,500,000 approx Operational Breakeven Occupancy Rate: 9.0 %
Phase Two Development Cost: $USD 1,900,000 approx Operational Breakeven Occupancy Rate: 3.8 %
Phase Three Development Cost: $USD 3,300,000 approx Operational Breakeven Occupancy Rate: 7.5 %
Note: Figures are approximate and subject to market conditions. Occupancy rate breakeven amounts are calculated for room revenue only and do not include residual revenue generated from supporting amenities including: restaurants, bars, activities, etc. Further cost breakdowns and analysis are available for qualified investors.
60% Ownership Investment Required: $USD 4.4MM Investment Options: Hold 60% Ownership of Project as Majority Partner. You can invest into any Phase of development or full development. To determine investment cost, take 60% of development cost of each phase. Of course, full phase ownership would require staggered investment over a pre-determined period of time.
Submit as loan with guaranteed rate of return of 8%. Term of Loan repayment= 48 months.
Investment Capital Includes: All Licenses, Government Negotiations, Staffing, Property Management, Construction
Current Weather in Ha Noi, Viet Nam
Reported at 04:30 UTC
Wind 1.5 meters per second (3.5 miles per hour) from variable directions..
Temperature: 30 °C (86 °F), with a dew-point at 18 °C (64 °F)
Temperature feels like: 31 °C (87 °F)
Atmospheric pressure: 1011 hPa (29.85 inHg)
Relative humidity: 48.6%.
Overall visibility: 9.0 kilometers (5.6 miles)
Additional Weather Information for Cities in Viet Nam
Da Nang, Viet Nam
Ha Noi, Viet Nam
Ho Chi Minh, Viet Nam
|
| | |
Property Search
