Due diligence is playing an important role in helping to spread the word internationally about what the Iguana group is achieving in Pattaya, writes John Davids.
By opening themselves up to being checked by an independent law firm – Magna Carta of South Pattaya – Iguana is able to send out the clear message to owners and investors that they build their promises.

International recognition
The criteria that Iguana has been measured against (see panel alongside) has also helped them to be the first developers in the city to be recognised by the Association of International Property Professionals (AIPP).
“We had to undergo this due diligence process as part of gaining AIPP membership,” said Ashley Tiernan, Iguana’s Sales Manager, “and we are glad we did it as it is really helping us when we contact foreign investors as it gives them reassurance that they are dealing with a reputable company.”
Ashley added: “The ability to say we have passed due diligence on all our projects is good news for buyers and agents alike.
“We know some agents are reluctant to take off-plan projects onto their books. This process should remove any doubts.
“Agents can feel safe that out projects will happen and they can see that we have been checked out. As a result a lot of international agents are promoting our offerings now.
“Customers can download the due diligence certificates off our website.”

The four Ps
The due diligence process fits well with what Iguana managing director Miki Haim sees as the cornerstones of his company’s business – price, position, promotion and product (the four Ps as I call them).
“We always offer a competitive price on all our products,” he said. “Our projects are in nice positions, close to the best the city has to offer but not so close as to be part of the noise and clutter.

Fully furnished
“For promotion we offer a full furniture package which many of our competitors do not do.
“The product almost speaks for itself but people can also look at the projects we have completed and see that we keep to our schedules on construction.”
Miki added: “In my opinion some condo blocks are being built too close to the city centre which can get very crowded. Our sites at Pratamnak and Jomtien are built in nice green and clean areas, not in a concrete jungle.
“Buyers need to be made aware that they can still be close to everything like the bars and discos but enjoy a quieter, more relaxed atmosphere for much the same sort of price – and we add the furniture, too.
“We need to get the message across that, with us, buyers are getting a real investment.”

A good example
An example of what Miki is talking about is the Hyde Park II Residence being built next to HP I on Soi 4 off the Thrappraya Road (see pictures on these pages taken in the showrooms of the studios, top, and one-bedroom apartments, below).
Ashley said: “HPII apartments have been furnished to a very high standard. Prices for a studio start at Bt 1.39m and the top price for a two-bedroom apartment on the top floor is Bt4.39m.
“The showrooms are in the fully complete HPI building which, in itself is a reassurance to those considering buying into HPII. At HPI they can see what the rooftop pool will look like in the second building.”

He added: “Construction at HPII has reached the sixth of the eight floors so we are not far off completing the skeleton of the whole block. Completion is scheduled for December 2010.”
Iguana can be contacted on either 0890945262 or 0876078880; www.iguana-group.com Ω

DUE DILIGENCE – WHAT’S INVOLVED

l Company registration and owners’ review
It is important that the development/construction company is an officially registered company and that the directors of the company are reputable.

l Land title confirmation
This ensures that the company is the legal owner of the land and that there are no encumbrances or liens against the land parcel.

l Various construction licences
There are various licences required by local and national authorities for the construction of any development. A simple check can confirm that these have been granted and that construction can begin without issue.

l Developer background checks/track record
It is important that a developer has a strong, transparent background especially under current market conditions. Previous projects can provide a good indication of quality and achieved completion deadlines.

l Sales agreement/contracts
Sales agreements should be checked carefully as they outline the entire sales process and responsibilities of all parties under various scenarios. One important aspect required to operate certain investment strategies often not offered by developers is the ability to re-assign the contract prior to completion.