At Siam Property Holdings, we understand that investing in Thailand’s real estate market can raise many questions. To help you make informed decisions with confidence, we’ve compiled answers to the most common inquiries about our services, legal compliance, and investment process. If you need further clarification, our team is always here to assist you.
Answer: Siam Property Holdings Ltd (SPH) is a UK-based, non-profit membership company that provides a secure and legal ownership structure for foreign investors interested in Thai real estate. SPH operates as a trustee, holding assets in trust and issuing non-fungible tokens (NFTs) to represent fractional ownership in these assets.
Answer: SPH provides a legal framework that allows foreign investors to hold rights to Thai property through a UK-based trust structure. The property is owned by a Thai Special Purpose Vehicle (SPV), and the rights to the property are represented as NFTs, ensuring compliance with Thai laws while offering the security of a UK trust.
Answer: Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership or rights to a specific item or asset, in this case, real estate. SPH uses NFTs to represent fractional ownership of property held in trust, allowing for easy transfer, management, and potential sale of these ownership rights.
Answer: To invest in property through SPH, you can purchase fractional NFTs that represent ownership in a specific property or portfolio of properties. These NFTs are backed by the underlying real estate assets, and your ownership is secured through the trust structure managed by SPH.
Answer: The benefits of using SPH include:
- Legal Compliance: Ensures your investment is fully compliant with Thai laws.
- Security: Your investment is protected by a UK trust structure.
- Flexibility: NFTs allow for fractional ownership, making it easier to buy, sell, and manage property interests.
- Transparency: SPH provides clear documentation and updates on your investment.
Answer: SPH operates under the guidance of legal experts in both Thai and UK jurisdictions. The ownership structure, involving Thai SPVs and UK trusts, is designed to comply with the Foreign Business Act in Thailand and relevant UK trust laws, ensuring that all transactions and holdings are legal and secure.
Answer: The Thai Special Purpose Vehicle (SPV) is a legally registered entity in Thailand that holds the title to the property. SPH, through the UK trust, holds beneficial ownership of the SPV’s shares, which are represented by the NFTs issued to investors.
Answer: Rental income generated from the property is collected by the SPV and distributed to NFT holders based on their fractional ownership. Returns are typically distributed quarterly in arrears, after accounting for any management fees and a reserve for ongoing costs.
Answer: Yes, you can sell your NFT on a secondary market or directly to another investor. The NFT represents your fractional ownership in the property, and the sale would transfer that ownership to the buyer. The sale process is streamlined through blockchain technology, ensuring a secure and transparent transaction.
Answer: If you wish to exit your investment, you can sell your NFT on the open market. Alternatively, SPH may offer buy-back options or facilitate sales to other investors, depending on the terms outlined in the investment agreement.
Answer: As with any investment, there are risks involved, including market fluctuations, changes in legal regulations, and operational risks related to property management. However, SPH mitigates these risks through its legal structure, professional management, and transparent communication with investors.
Answer: Property management is handled by professional agencies in Thailand, such as Sacred Properties Ltd, who ensure that the properties are well-maintained, rented out, and managed in accordance with local laws. SPH oversees these operations to ensure they align with the interests of the NFT holders.
Answer: Fees may include management fees for property upkeep, transaction fees for buying and selling NFTs, and other administrative fees related to the trust and SPV management. These fees are typically outlined in the investment agreement and are deducted before returns are distributed to investors.
Answer: SPH provides regular updates on the performance of the property, including rental income, expenses, and market value. These updates are accessible through a secure online portal where you can also view your NFT holdings and transaction history.
Answer: In the event of a dispute or issue, SPH follows a structured process to resolve the matter, involving mediation, legal consultation, and, if necessary, arbitration. SPH aims to protect the interests of the NFT holders and ensure fair and transparent resolution of any issues.
Answer: Yes, non-residents of Thailand can invest in Thai property through SPH. The structure is designed to facilitate international investment while ensuring compliance with Thai laws and offering the security of a UK trust.
Answer: SPH takes privacy and data security seriously. All personal and financial information is stored securely, and transactions are conducted on a blockchain, providing transparency without compromising your privacy. SPH adheres to data protection regulations in both the UK and Thailand.
Answer: For more information, you can contact Siam Property Holdings Ltd through their official website, email, or phone. SPH also offers consultations with investment advisors who can guide you through the process and answer any specific questions you may have.
