Investment Risk Disclosure

Information published on Core Investments is investment research and general market commentary. It is not personal investment advice, legal advice or tax advice, and it does not constitute an offer or solicitation to purchase any specific property, security or financial product.

Past performance is not a reliable indicator of future returns. Property is illiquid, capital-intensive and exposed to a wide range of risks. Investors should consult independent qualified advisers before making decisions.

The fundamental driver of resort and hotel-managed property in Thailand is international tourism demand. Demand is exposed to global recessions, regional public-health events, geopolitical shocks, currency moves in source-country markets, and changes in airlift capacity. Each of these has historically produced multi-quarter declines in arrivals and rental income.

International investors typically hold Thai Baht-denominated assets and earn Baht-denominated rental income. Returns translated back to a home currency are exposed to the THB/USD/EUR/GBP exchange rate and to Bank of Thailand monetary policy. The Bank of Thailand publishes the regulatory framework that governs inbound and outbound foreign-exchange transactions, including the Foreign Exchange Transaction (FET) evidence used at the point of repatriation.

Foreign ownership of Thailand real estate is governed by the Condominium Act and the Land Code. Foreigners may hold freehold title to condominium units within a building's 49% foreign quota, and long-leasehold interests on landed assets. Regulatory frameworks can be amended, the foreign quota in a specific building can be exhausted, and title and quota status must be verified at the point of purchase. Independent legal counsel is essential.

Hotel-managed and resort assets depend on a third-party operator. Operator performance, distribution platform changes, rental pool structure, FF&E reserve adequacy and major capital expenditure cycles all affect realised investor yield. A change of operator mid-cycle can have a material impact on net income.

Property is illiquid. Selling a resort, hotel-managed or residential unit in Thailand typically takes months and is sensitive to the cycle. Investors should not allocate capital they may need to access on short notice.

Yield projections published by developers, operators or third parties are estimates, not guarantees. Where guaranteed-return structures are offered, the guarantee is only as strong as the counterparty standing behind it. Investors should assess the underlying economics independently of any guarantee.

Gross yield is not net yield. Operating costs, FF&E reserves, marketing fees, OTA commissions, sinking funds and taxes can materially reduce the figure that reaches the investor.