Phuket, Thailand.......Why One Person Believes the Best Profits are Yet to Come.

Graham Bibby has invested the largest part of his asset, and for that matter his life. into what he believes will be the biggest retirement location providing the ultimate in lifestyle with great property appreciation and yields.

Graham Bibby is the founder of Richmond Asset Management; a Hong Kong based Asset Management Company providing a new style of discretionary management and advice both for institutional clients as well as private investors.

"Our methodology centers on making positive returns in all market conditions, irrespective of the general equity, currency or commodity market diversity.  Many strategies have made 10% to 15% per annum year in and year out for the past 15 years with no loosing years."  Graham is a regular speaker on BBC, Bloomberg TV, CNBC, CNN and more recently India TV.  He regularly speaks at conferences and seminars on the subject of market trends and where the smart money is investing.

Whilst property has formed some percentage of clients' portfolio, it is only during the past 6 years that Graham has shifted the majority of his own assets into property and property developments.  With developments and investment opportunities covering UK, Australia and New Zealand, Graham has built up invaluable experience. He is using this to build a brand and reputation for quality property developments in Phuket, Samui and soon Krabi and the Phang Nga Bay area.

Great opportunities have been seized in Australia, mainly in the commercial property side with many more great returns expected.  However, the greatest opportunity is forecasted for Phuket.  Just 5 short years ago, 'The Himmaphan' was completed as a boutique private retreat with eight (8) ensuite units within a tropical idyllic setting (see www.himmaphan.com). Chefs, maids, masseuses, drivers all at your beck and call. The Himmaphan offers the best in corporate or family retreats and sleeps up to 16 people. Lobsters, Caviar, Don Perignon, Cohiba Cigars by the pool… the ultimate in luxury.

Whilst this has been retained as one of Graham's personal assets he is seeing increasing interest people wanting to purchase the property.  Graham and his wife Nan say this was their first property built in Phuket so it is a labor of love.  That said, Graham has quite rightly stated, "you have to be a realist, if an offer came along for Thai Baht 80 Million, we will have to seriously consider it".

Following 'The Himmaphan' came the very successful 'The Residence' project, private pool villas built to the highest of standards……Spa, Gym, Cafe and Beach Club, all part of the facilities.  'The Residence' was designed with these things in mind - personal living, lifestyle and investment return, capital appreciation and yields.  Most buyers want to stay in their home 4 to 6 weeks a year hassle free.  No maintenance issues as everything is taken cared of - i.e. gardening, swimming pools, common areas, cleaning, even chefs and masseuses.  Property is set to continue to appreciate at the rate of 15% to 20% per annum for the next 10 years as Phuket has only just started to have the kind of facilities and infrastructure needed to support a growing "retirement class" of buyers.

Richmond has set up a specialist resort management team providing 5 star service and investment return, which is typically a yield of 7% to 8% on top of your capital appreciation.  Sophisticated tax planning structure can simply be set up for you making this a very less or no tax investment return.  "My 30 years of experience in the world of investment has ensured we focus on ensuring grand design and quality, which will in turn ensure the best of long term capital appreciation."

What more could you want, an investment that you can enjoy when you want and an income and capital appreciation when you are not there, all taken cared of by a team of progressive planning estate and resort management staff.  The popularity of this type of investment has been proven with Phase 2 of 'The Residence' being 70% sold out in less than 1 year AND Phase 3 sold out in 12 weeks! A Phase 4 is now planned along with 40 Rai (64,000 square meters) project.  However, these are expected to be reserved very quickly as this phase will have an 8% per annum rental guarantee. 

Other projects commencing are 'The Loch Palm', right next to the beautiful Loch Palm Golf Course; 'The Pier', apartments directly on the ocean at Chalong and  'The Park', next to the Laguna Complex with its world famous Sheraton and Banyan Tree Hotels.  But before more on these projects and upcoming ones in Koh Samui, Graham would like to explain why Phuket is so popular and why the best profits and lifestyle are only just starting:

Being from England, I was aware of popular destinations for Europeans for retirement i.e. Cyprus, Malta maybe France but mainly Spain.  Over 30 years of growth in the Spanish market supported by retirees enamored of lazy days in the sun.  But in Asia, 7 years ago….nowhere! Yes, Bali had a property market for holiday houses but live there full time? Forget it!  What to do after you have been there many months or when it rains?  The same could have been said for Phuket 7 years ago when I first visited following a 7 year gap from my first visit.  But this time something was changing, the first two developments by foreigners were under way.  Still, there was not much to do, great beaches, great islands, diving, sailing, championship golf courses . . . but if it rained, there's nothing else left to do...

Then, over the past few years alone, dirt tracks changed to 3 lane highways, vacant lots gave rise to multi-cinema complexes and more shopping malls.  Then came Tesco Lotus; the biggest supermarket chain in the UK; then Big C, then Central Shopping Mall, Gucci, Ferragamo, Cartier…all the brand names…it's all coming. Two new golf courses have opened up to add to the existing 5, 2 marinas including a super yacht marina, top class restaurants, expatriate communities, The Beef and Burgundy club, The Rotary Club , Golf Societies and then some of the best medicine and educational facilities in Asia if not the world.

At the Bangkok Phuket Hospital, people fly from around the world for health and wellness check ups and dentistry not to mention high class cosmetic surgery.  A French architect I was working with for 'The Residence' had a complete medical check-up, from heart, blood , liver …everything you could think of and all for under US$300 including breakfast.  Eye surgery, breast enhancement, anti-ageing; people come from all across the globe for this medical treatment and care.  This is a great plus for people looking to Phuket as a retirement destination.

Dulwich College, a replica of the famous Dulwich in the UK has provided exceptional educational facilities, although recently it changed its name to The British International School.  Even the local international schools provide very good education. Plans are also underway by another organization to build Asia's largest international school with the very latest in technology and fiber optics.

Many that are retiring are actually quite creative people like myself early to mid 50's, keen on  sailing, golf, swimming, enjoying great food and the occasional night out.  It's all coming out and it means this will become Asia's most desirable retirement location by a long way. The next 10 years will see exceptional growth.  So, how do you buy? Whilst mainly complicated structures are available, the best and most straightforward is leasehold, effectively a 90 year lease with a clause giving you the right to convert to freehold should you wish to in the future. Many purchasers  use offshore companies such as BVI (British Virgin Islands) companies to hold the lease and buildings so if and when you decide to sell, you just simply sell your offshore company thereby saving transfer taxes and more importantly you don't trigger a taxable event on your profits in Thailand.

Back to the Richmond story, Graham moved to Asia and Hong Kong in 1991 and only became full time in Phuket over the past year, having previously traveled back and forth every month to oversee developments. Now with 6 projects underway, it has become important to be based in Phuket.  Graham said that this is the first time since he has been in Asia that he feels truly settled. He loves the Island and the people. He and the Richmond Group are dedicating their future to helping people enjoy the same lifestyle and investment opportunities he sees for Phuket. 

In addition to direct property purchase, it is possible to become a passive investor subject to allocation availability. Returns are typically offered with the 15-25% return depending on project but the allocations are quickly snapped up. Most investors are in the region of blocks of US$250,000 although investments can be pooled. Right now, we have one group looking to invest US$50Million where we will look at much larger projects. Typically apartments or hotels with either an ocean location or an ocean view. These investors are looking for something very conservative with a forecast of 8-10% return per annum annually for the next 5 years.