One, The most stunning Bar/ Club in Ban Chang is for sale

[Laem Yai]

One is for sale! Asking price 3.5 M Bath, 9 years lease, rent pr. month is 28.000 Bath. No key money. Reason for sales is that we do not have Thai partners, and due to this problem getting staff who can be trusted. If Interested it can Come with a 4 Mill Bath Company. One is the biggest and most stunning bar/ club in Ban Chang. Down stair Bar have 5 Flat screens, High End stereo, Pool Room with Pool table. Fully equipped Bar. The building have 8 Bedroom With bathroom. It also have one floor with Laundry room, Kitchen, Storage room, VIP Room with Hi End stereo , karaoke, 70" Flat screen, the room is amazing. Everything in the bar is brand new. Interested E-mail at [email protected]

 

https://www.facebook...&type=1

[Hellbender]

Someone has to make min profit of 60K a month to reach the break even point for 9 consecutive years.

 

In this case the buyer actually made no profit. So how much is the business generally?

 

I am not a potential buyer but this can help many interested..

Edited August 25, 2012 by Hellbender

[whitespider - RIP]

Someone has to make profit of min of 60K a month to reach break even point for 9 consecutive years.

 

In this case the buyer actually made no profit. So how much is the business generally?

 

I am not a potential buyer but this can help many interested..

 

Not sure of the logic there bro. I assume you are working that figure out as returning the capital investment over 9 years!?? Thats actually flawed logic as the capital investment is retained i.e. could be sold on, lease renewed etc. If you invested 3.5m Baht that money is not "lost" its just moved from (say) a bank account into an asset which can be sold at a future date.

 

I DO understand what you mean but people often misconstrue capital investment forgetting that the capital actually remains intact, indeed should increase (assuming they run the business well of course).

 

Had a similar situation recently where a guy was considering investing 1m baht in a small biz here. He was told he would get 20% in shares and earn around 30,000 a month for doing nothing. He argued "that will take me 3 years to get my money back" - again forgetting that his 1m in "shares" remained intact at all times and could be sold later. Had he put his 1m in a bank his return would be about 50,000 a YEAR.

[Laem Yai]

With 1 girl and in between maybe 50% of the month 2 girls, and one cashier (ladyboy)

Turnover 1.month was after paying ladydrinks, 229.000 Bath

Money earned at night time, during daytime, due to lack of ladies, They always come late!

Thats very good, coz the bar is big, and when there is no people , no ladies it feels empty.

 

And yes the lease can be continued after 9 years, very nice Landlord, He spend his rental money in the bar.

And yes it can be re-sold, or rented out.

It just need someone who can get the staff..

And there is stereos, tv and stuff for a value of 1 Mill Bath in the bar.

[Sexyfarangman]

Not sure of the logic there bro. I assume you are working that figure out as returning the capital investment over 9 years!?? Thats actually flawed logic as the capital investment is retained i.e. could be sold on, lease renewed etc. If you invested 3.5m Baht that money is not "lost" its just moved from (say) a bank account into an asset which can be sold at a future date.

 

I DO understand what you mean but people often misconstrue capital investment forgetting that the capital actually remains intact, indeed should increase (assuming they run the business well of course).

 

Had a similar situation recently where a guy was considering investing 1m baht in a small biz here. He was told he would get 20% in shares and earn around 30,000 a month for doing nothing. He argued "that will take me 3 years to get my money back" - again forgetting that his 1m in "shares" remained intact at all times and could be sold later. Had he put his 1m in a bank his return would be about 50,000 a YEAR.

 

Not sure I follow this. He is paying 3.5 million for a lease that expires in 9 years, So the value of this lease decreases by the day. Not to mention the 28,000 he has to pay monthly. So he has to make about 60,000 a month to break even. At the end of 9 years he has nothing. In my view, for this venture to worthwhile he would need to have a profit of 100,000 per month to compensate him for his investment and work.

 

By the way, you say someone could have gotten 50,000 on 1 m in a bank. What bank are you talking about? In the USA, banks are paying less than 1/2 of 1 % annually on savings accounts.

[whitespider - RIP]

Not sure I follow this. He is paying 3.5 million for a lease that expires in 9 years, So the value of this lease decreases by the day. Not to mention the 28,000 he has to pay monthly. So he has to make about 60,000 a month to break even. At the end of 9 years he has nothing. In my view, for this venture to worthwhile he would need to have a profit of 100,000 per month to compensate him for his investment and work.

 

By the way, you say someone could have gotten 50,000 on 1 m in a bank. What bank are you talking about? In the USA, banks are paying less than 1/2 of 1 % annually on savings accounts.

 

Leases can be renewed and/or sold on at ANY time. Most people would renew a new 9 year lease after 3 years had expired with rents changing accordingly.

 

Indeed the owner has posted this is the case. There is NO need to assume it all ends after 9 years!! if that WERE the case then your argument holds water but it would be a very "daft" person who didnt maintain 9 years in perpetuity so after 3,6l,9 years there should STILL be 9 years to sell on.

 

For example this bar has over 2m of assets in it so in simple terms its 1.5m for the 9 year lease. Those assets WILL depreciate but they are still there now. A good businessman would protect the lease accordingly. I was assuming the new owner would indeed do this.

 

Single units in Ban Chang rent for 20k a month (some a little more) so a double unit at 28k a month is on a 12k discount. 12kx12x9 = 1.3m - so in essence you are paying 200,000 for the "business". As the owner has said the turn over was 229k a month with NO girls, that should not be difficult to turn round.

 

Based on that I would say that 3.5m with NO current profit is a good case for a "flip" i.e. MAKE it profitable then sell on after around 1/2 years time. there is even potential for an asset strip although I do hope that would not be the case.

 

Most of the well run bars in BC take around 10,000 a day. That is NOT "profit" its takings so lets assume a profit per month at around 150k. This bar is a DOUBLE unit with 8 rooms so, in theory, should offer a higher return but only if the new owner knows his stuff.

[Sexyfarangman]

Leases can be renewed and/or sold on at ANY time. Most people would renew a new 9 year lease after 3 years had expired with rents changing accordingly.

 

Indeed the owner has posted this is the case. There is NO need to assume it all ends after 9 years!! if that WERE the case then your argument holds water but it would be a very "daft" person who didnt maintain 9 years in perpetuity so after 3,6l,9 years there should STILL be 9 years to sell on.

 

For example this bar has over 2m of assets in it so in simple terms its 1.5m for the 9 year lease. Those assets WILL depreciate but they are still there now. A good businessman would protect the lease accordingly. I was assuming the new owner would indeed do this.

 

Single units in ban Chang rent for 20k a month (some a little more) so a double unit at 28k a month is on a 12k discount. 12kx12x9 = 1.3m

 

Based on that I would say that 3.5m with NO current profit is a good case for a "flip" i.e. MAKE it profitable then sell on after around 1/2 years time. there is even potential for an asset strip although I do hope that would not be the case.

 

Most of the well run bars in BC take around 10,000 a day. That is NOT "profit" its takings so lets assume a profit per month at around 150k. This bar is a DOUBLE unit with 8 rooms so, in theory, should offer a higher return but only if the new owner knows his stuff.

 

But since this is a lease, he does not own the 2 million in assets. Also, renewing the lease changes nothing. Presumably, his renewal price would not be less than the amount he originally paid. Hence, he still has to make 60,000 a month to break even, and the renewed lease depreciates in value by the day just like the old lease. The real issue here is how much this business can make on a monthly basis, and there are no figures available to tell us one way or the other. A lot of this profit probably depends on the quality of the girls. So how well can the new lessee find female talent? This is a huge issue for any bar owner. IMHO it would be far preferable to own the place outright.

Edited August 25, 2012 by Sexyfarangman

[whitespider - RIP]

But since this is a lease, he does not own the 2 million in assets. Also, renewing the lease changes nothing. Presumably, his renewal price would not be less than the amount he originally paid. Hence, he still has to make 60,000 a month to break even, and the renewed lease depreciates in value by the day just like the old lease. The real issue here is how much this business can make on a monthly basis, and there are no figures available to tell us one way or the other. A lot of this profit probably depends on the quality of the girls. So how well can the new lessee find female talent? This is a huge issue for any bar owner. IMHO it would be far preferable to own the place outright.

 

ALL the contents of the premises belong to the leaseholder

 

Leases are renewed FREE - he has stated there is NO key money, just renew the lease at a new rental price.

 

YES the issue is getting the girls of that there is no doubt, hence the reason for sale.

[Laem Yai]

If you take everything that the landlord don't own, yes there is about 2.mill bath in equipment and stuff.

 

If chosen to sit on the lease the leasing contract says that after 9 years the owner of the leasing contract can for the same monthly rent keep it going for another 5 years, with the same terms.

In case that the owner of the leasing contract does not, let's say not pay rent, and the landlord want the owner of the leasing contract out from the building due to not follow up terms, there is payed 3 month rent up front witch will not be payed back before he sell the leasing contract, and a new owner takes over, or after it end after 9 years.

But as I said the owner of the leasing contract can chose to keep it running for 5 more years with the same terms. if the owner want to keep it on for longer the landlord want to be involved, like maybe discuss the rent and terms for another 10 Years.

The Leasing contract is original for 10 years + the right to keep it on for 5 more years with the same terms.

That's 15 years together, and very long time, so I understand why the landlord want to be able to adjust the terms after 15 years. A lot can happen, in this world in 15 years, also the price level in Thailand.........

[Hellbender]

Not sure of the logic there bro. I assume you are working that figure out as returning the capital investment over 9 years!?? Thats actually flawed logic as the capital investment is retained i.e. could be sold on, lease renewed etc. If you invested 3.5m Baht that money is not "lost" its just moved from (say) a bank account into an asset which can be sold at a future date.

 

I DO understand what you mean but people often misconstrue capital investment forgetting that the capital actually remains intact, indeed should increase (assuming they run the business well of course).

 

Had a similar situation recently where a guy was considering investing 1m baht in a small biz here. He was told he would get 20% in shares and earn around 30,000 a month for doing nothing. He argued "that will take me 3 years to get my money back" - again forgetting that his 1m in "shares" remained intact at all times and could be sold later. Had he put his 1m in a bank his return would be about 50,000 a YEAR.

 

I agree with you bro and yes it can be upgraded in many ways, don't want to hijack OP's thread and wish him luck selling his bar.

 

I just wanted to make a point, if it is running good than some one should seriously think for it.

 

BTW my next trip start from Oct 1 so hope to catch you for some beers in Ban Chang, i heard that's your Favorite spot!

 

Guys no need to get technical and let hope the OP gets his bar sold. It looks neat and trendy.

[Laem Yai]

Thanks! If you can get a good cashier and bartender, together with 10 fresh ladies or even 20, this place would be hammering! and locals in Ban Chang always love to see some new girls, coz a lot of the girls on the strip have been there for a long while now.

The bar also have license to sell food, and a fully equipped kitchen, so you can sell some bar snack's to, extra money,, and costumers don't need to go anywhere if they just feel for a small snack! We have often made chicken nuggets, french frites, fried union rings, spring roll with different dipping, And more, People like it! It is no secret that it's not easy but you can make some good money, what would Thailand be without girly bars,,, not the same, we have to agree on that.

Get the ladies in get a part of the day costumers in, + night time, the bar would easy have 30K a day, And it will not even look busy. So far with only a bit lady the record is 47K from 8pm to 2am, busy, but only 6 hours open, and fun! got phone call 1 hour ago 3 young girls 18 very good looking wanted to start work here, let's see if they turn up, If they do it will be good!!!

[Velcro]

Selling already !

Didn't the owner of this place get the bars name tattooed on his arm prior to opening ?

[Laem Yai]

Ya the tattos are there, it says One

Cool!

 

Anyway, Got a nice lady in, who is bringing girls to the bar. She is the new manager in One.

She got som girls in already, and the bar open up today, 2 girls 20 years old, lets hope it only gets better, she will have serveral more ladies coming during the next 2 weeks. All depending if the costumers are there!

So everyone, welcome!

https://www.facebook.com/pages/Labuone/163320213787624

[BSJ]

Any more pictures you can post here?

[Contangee]

Nice looking bar. Good luck selling it.