Co-marketing venture from Simplyzigzag.com

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by Lin Freestone

Simplyzigzag.com is co-marketing a new Seed Capital Investment Fund (SCIF) in an exciting new venture which is thought to be the first of its kind for an online estate agency. Launched today, the fund aims to raise £5m to provide capital for the acquisition of a site in Thailand.

The developer of the site is planning to build a luxury, 6-star resort and villa complex, together with an international school. The company is renowned in its field, with experience in delivering luxury developments not only in Thailand but in other parts of the world.

The SCIF, through its special purpose vehicle, would acquire beneficial ownership of the land. The deal represents a strategy that allows for a quick and defined exit in 12 months, with a guaranteed 30% return for a minimum £25,000 investment.

If the investment period is longer than 12 months, additional payments will be made, up to a total return of 42%.

The developer has been working with the seller since 2006 and has agreed an option purchase price of $18m. The latest valuation report by CBRE valued the site at approximately $40.6m.

Planning permission has already been granted for residencies on the 108 acre site close to Pattaya City. The plans will now be adapted to include the other aspects of the project comprising a hotel and residential villas. Design firm, WOHA, has been appointed as designer and architect.

Pattaya, which is a 90 minute drive from Bangkok, overlooks the Gulf of Thailand and does not yet have a luxury residential or hotel compound. Tourism to the area attracts approximately 5.4 million visitors a year.