Rise Venture to link unsold units to buyers

Rise Venture to link unsold units to buyers

All Inspire subsidiary aims to fill market gap

Mr Thanakorn says the new business can help small or medium-sized developers.
Mr Thanakorn says the new business can help small or medium-sized developers.

All Inspire Development Plc has diversified into acquiring unsold, completed condo units and furnishing them before reselling onto the market, aiming for a net profit margin of 20% from the new business.

Chief executive Thanakorn Thanawarith said the new business was derived from buyers' requests for condo units in locations where All Inspire did not have developments.

"In some locations where we had projects launched and completed, units were sold out but there were still buyers looking for a ready-to-move-in unit," Mr Thanakorn said. "We saw an opportunity in the market."

The new business, called Rise Venture, is operating under Rise Estate Co, a new subsidiary founded two months ago with registered capital of 30 million baht. Last year it was under a business unit in All Inspire and recorded 320 million baht in sales of 30 units in the Asok area.

Rise Venture will explore condo units that were completed and unsold in locations buyers are interested in. These units will be within three years old and still held by developers.

The company will make a deposit with developers worth 5-10% of the unit price, decorate units and install furniture and fixtures before putting them on the market.

"These units are not transferred to us but will be held by the developers until we get buyers," Mr Thanakorn said. "After buyers agree to buy, these units will be transferred directly to buyers from developers. Under this process, we do not need to pay a transfer fee or a special business tax."

But Rise Venture will have six months to find buyers under the agreement with developers, longer than the usual period developers give to walk-in or individual buyers, which is typically less than one month.

If the unit cannot be sold to the buyer within six months, the company will have to transfer the unit.

The maximum sales value that Rise Venture can handle at a time will be about 200 million baht, Mr Thanakorn said.

"This business can help some developers, particularly small or medium-sized ones that have unsold yet completed units on hand," he said. "We will have a discount of up to 30% from developers, equivalent to the price offered during first launches."

Rise Venture aims to have sales of 500 million to 1 billion baht from the new business by the end of 2018, with at least a 20% net profit margin.

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