Latest News: Panama Construction up 44%

Latest News: Canal expansion bids to be opened.

Panamá, Tuesday July 31, 2007

La Prensa newspaper article translation by Panama All In One, Inc.

tourism: ROYAL Caribbean TAKES THE FIRST STEP.
Panamá will be cruise lines "home port"
The ambitious government project will begin operations in December 2008.

President, Martín Torrijos launched yesterday the initiative for Panamá to become a cruise lines home port

BLOOMBERG/ Graham Barclay
CRUISE SHIPS. Royal Caribbean has a 21 ships fleet and 3 new ships under construction.
Raúl A. Bernal
rbernal@prensa.com

More than ten million dollars will be invested to construct a new cruise lines terminal next to the Colon 2000 Port, as part of the activities that the private sector will launch to convert Panama into a home port , after Royal Caribbean International (RCI) announced yesterday that it will establish operations on the Caribbean coast of Panama.

Augusto Terracina, General Manager of Colón 2000, said that the designs for the new terminal are ready and construction will begin in October.

In December 2008 the Enchantment of the Seas' maiden voyage from Colón will take place, under which RCI will establish a route with the port of Colón, Panamá as its origin, thus making a reality the government project to establish Panamá as the first and most important cruise embarkement port in Latin America.

The initiative "will inject fresh money to the national economy in the millions of dollars", said the executive, without precising the numbers. Additionally, all the travel agencies will promote Panamá as a home port, in addition to all its tourist attractions.

The promoters will have a year and a half to prepare the logistics and infrastructure that a project of this nature requires.

When asked if Panamá is prepared to lodge the thousands of home port tourists that will visit the country , the leader of the hotel industry, Jorge Loaiza, nodded positively.

Tourism authorities project the construction of 15 new hotels in the country during the next three years, that will generate three thousand more rooms, to add to the existing sixteen thousand rooms.

Actually, there are only one thousand two hundred ninety seven rooms available in Colón. Nevertheless there are two new hotels under construction that will add an additional two hundred and ninety seven rooms.

The route that the Enchantment will cover, will be leaving Colón to Cartagena and Santa Marta, Colombia; Aruba, Bonaire and Curacao, according to Edwin Vásquez, Marketing Manager of Grand Tours CRT, Royal Caribbean representatives in Panamá.

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PROPERTY: Ideal spot for the second home

By Adam Thomson, Financial Times

Published: July 24 2007 11:54 | Last updated: July 24 2007 11:54
Charles and Sharon Erwin, two semi-retired residents of Mobile, Alabama, have spent much of the past few years travelling the world in search of a second property to which they can escape during the colder months. Between leisurely holiday trips and more active searching, the couple have visited more than 40 countries so far. But tonight, they are sitting in a cosy family restaurant in the hills of Panama and they sense that their quest for the ideal spot has come to an end.

“Have you ever met somebody you just liked immediately?” asks Mrs Erwin, an elegantly dressed woman with fine features and an intoxicating southern drawl. “Well, the Panamanian people are mostly like that.”

Now 71 and 62, respectively, Mr and Mrs Erwin are part of an invasion of foreigners who are snapping up Panamanian real estate in every shape, size and location imaginable as part of what has turned into the most vigorous property boom in decades. “It is as if they were rediscovering America again,” says Lourdes Fabrega, the restaurant owner who says an increasing number of her customers are foreigners on a hunt for property.

In Panama City, the capital, real estate developers have responded to the foreign interest as well as to strong local demand by building tower blocks of luxury flats on just about any plot of land they can get their hands on. Last year, construction permits surpassed $1bn, growing more than 10 per cent compared with the previous year. Iván Carlucci, president of Acobir, the national association of estate agents, says Panama is the target for 175 high-rise apartment blocks, which are either under construction or in the pipeline.

The surge has been so great that the government has had to establish special courses to cater for the growing demand for plumbers, electricians, carpenters and other construction-related skills. Diomedes Concepción, who heads the programme, claims that about 200,000 Panamanians will receive such training this year alone.

The fundamental reasons for the interest in Panama seem clear enough. Investors, particularly foreigners, are reassured by the fully-dollarised economy, the country’s stable government, rapidly expanding economy, proximity to the US, hot climate and good healthcare provision. In addition, prices are relatively competitive in relation to those of neighbouring Costa Rica, which has been attracting foreign buyers for years. Juan Francisco Pardini, president of Business Panama Group, a one-stop investment shop, says property prices about five years ago were between eight and 10 times cheaper than those of Costa Rica: today, they are just three times cheaper.

Mr Pardini also points out that buying property in Panama is straightforward in terms of paperwork and bureaucracy. Typically, he says, charges related to purchasing real estate regardless of value are roughly $3,000 plus an optional fee of 1 per cent of the property’s value for title insurance.

Inevitably, however, all the interest has produced inflation. The cost of steel went up 40 per cent at one point last year. Meanwhile, the availability of cement at the start of this year became critical. In February, Ms Fabrega, the restaurant owner, could not ensure a reliable supply for the small house she was building on her land. “If I wanted 10 sacks I could only get five,” she recalls. “It felt as if there was no cement in the entire country.”

Property prices have also risen. Mr Carlucci says that land prices have increased on average 100 per cent in the past two years alone.

Such rises have spawned talk of a bubble forming in the real estate market. The feeling has been reinforced by growing evidence that some investors – from the US but also, it appears, from Venezuela and neighbouring Colombia – are buying pre-sale condominiums in bulk to “flip” or sell them on as little as six months later.

On top of that, three highly publicised high-rise projects in Panama City have run into problems – though apparently for different reasons – and have either been cancelled or significantly altered.

All this has led many experts to express caution about whether the market can continue to expand at today’s rates. As Guillermo Chapman, an economist and a former finance minister, says: “You should look at the housing part of Panama’s growth with a critical eye.”

Not everyone agrees, however. Mr Carlucci of the real estate association, rejects the idea of a bubble, arguing that the sector is both healthy and sustainable thanks to Panama’s strong economy and real demand both from locals and foreigners.

Héctor Alexander, the finance minister, agrees. “The few projects that have run into problems are the exception to the rule,” he says. “The construction sector is sustainable.”

True or not, it is unlikely to make much of a difference for families such as the Erwins. Even with the price increases they still think it is cheap. And that, as Mr Erwin admits, is important to a man of his background. “I was brought up kind of frugal, and I just hate to spend money,” he says with a smile.
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UK developer wins $700m Panama contract
Wednesday, April 04 2007 @ 09:12 AM EST
Contributed by: Don Winner

Foreign Direct Investment London & Regional Properties, a privately owned British developer, has won the right to build a new mini-city on the banks of the Panama Canal, The Times has learnt. The London-based firm, founded and run by the brothers Ian and Richard Livingstone, beat competition frm 16 other international firms to be selected as preferred bidder this week. The $700 million (£355 million) project promises to be one of the largest development projects in the world, covering 2,750 acres, and it could transform the trading fortunes of Panama. The plan is the most ambitious scheme to be taken on by London & Regional, probably best known in Britain as the firm that bought the old Marks & Spencer headquarters on Baker Street. The area in Panama, just half a mile frm Panama City and right on the canal, covers an area the size of London stretching frm Regents Park in the north to the Oval cricket ground in the south and frm Sloane Square in the west to London Bridge in the East. At the heart of the 40-year building programme for the "Howard Project" is the proximity to the world's busiest trade canal and an air-strip built by the Americans stretching 2.75km but which has been largely derelict since US forces pulled out of the country eight years ago. The site is earmarked for a massive new trading hub, known as a "multimodal port" which will take in both the air-strip, the canal and build vast depots to store all manner of goods that pass through the canal. (more)

Editor's Comment: There's another huge infrastructure development contract that's going to be built in Panama over the next ten years. Excellent. Glad to see the government of Panama is finally going to put the facilities at the old Howard Air Force Base to work.

Jason Mills, development director at London & Regional, said: "This underlines the attractiveness of Panama as a global investment destination." About 60 per cent of the trade in and out of the United States passes through the Panama Canal, while the land-site sits on the Pan American highway, a motorway that runs frm South America right up to California, accounting for more US trade.

Singapore Airlines has already struck a deal to refurbish its Asian fleet of aircraft on the site. The area is also earmarked for thousands of new homes, hotels, a golf course and science park, all generating at least 20,000 jobs. London & Regional have teamed up with Isaac and Jaime Gilinski, the father and son Panamanian developers who carry considerable influence in Central America. Sources close to the deal said that London & Regional did not need any further debt or equity partners for the project. The Panamanian Government invited the World Bank two years ago to run an international auction to select a developer of the site. London & Regional beat off competition in the final round frm the Miami-based property firm Easton Group.

Other bidders included the Codina Group, frm Florida, and Cabi Control, frm Mexico. Mr Mills said: "The Panamanian Government has been forward-looking in hiring the World Bank in a transparent tender process." The Panamanian Cabinet is due to ratify the decision to appoint L&R next week, with completion expected next month. A formal master planning application will be submitted three months later.

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By Nestalí Dimitri Geneteau for the Capital Financiero

 The coasts of Colon could see an injection of $1 billion dollars in the next five years as plans to build four new resorts that would host more than 200,000 people annually take shape. The investors are busnessmen from Canada, Holland and Spain, and they hope to develop several large projects said the General Submanager of Panama's Tourism Institute Carl Fredrik Nordstrom. Right now about 15,000 hotel rooms exist in all of Panama, and plans call to expand that total to 25,000 rooms in the next five years, said IPAT. Of that total 1,297 rooms are in Colon province, where 25 tourist hotels operate according to Carlos Cavaría, the Mayor of Portobelo. Right now there are several projects in the works to increase the number of hotel rooms available along the coast of Colon province, an increase to the existing facilities on Isla Grande and Bananas Village, which implies an investment of $15 million. Nordstrom said there is great interest in Europe to develop the Panamanian Caribbean coast where there is currently no connection with the rest of the country, which would be good for the development of Panama. (more)

Editor's Comment: A billion here, a billion there, after awhile it starts to add up to some real money. So far I'm tracking $5.25 billion for the canal expansion, $8 billion for the Oxy refinery, about another $1 billion for the mega-port project and the cleanup of the Bay of Panama, all of the money being spend on construction and housing projects, golf courses, beach resorts, highways, power projects, as well as natural resources such as gold, copper, and oil. Holy crap. Wanna buy a condo? In this economy you could practically open a pay-per-salt-lick and make money.

Although he did not reveal the names of the projects, nor numbers of investment because plans are have to be reviewed by the Board of Directors of the IPAT, but he did estimate the total investments planned so far will surpass $1 billion dollars.

Jorge Loaiza, the President of the Panamanian Hotel Association (Apatel) holds a similar view, and said that the construction of a highway towards Colon from the Tocumen International Airport would cut the drive to 45 minutes.

IPAT said the coasts of Colon are classified as a tourist zone from Maria Chiquita to the town of Santa Isabel. Due to that classification, all tourism projects, hotels, marinas, restaurants and other activities related to tourism benfit from incentives under Law 8 which is valid until 2015.

The investment to build recreational areas is important, as well as the training and education to prepare the local population to work in these resorts. Also, the development of the area as a tourist destination would allow for a greater number of tourists to use the area as well as an increase in consumption in the zone. The alternative of the IPAT to preserve the natural reserve, would be to develop habitacionales projects from Maria Chiquita to the entrance of Portobelo.

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OPP Wednesday, 27th June 2007, 15:58:15
PANAMA ATTRACTIVE OPTION FOR UK INVESTORS

Goldman Sachs predicts that Central America will be the world's fifth largest economy by 2035 and, with increasing numbers of direct flights and extensive coastland available for development, Panama looks to be a promising investment destination.

According to overseas property specialists, Amberlamb, Panama has a lot going for it as an emerging and secure investment opportunity. Communication and transportation is well developed in line with the country's maturing banking industry, it says, developing sound lending policies and readily available mortgages. However, the perception that Panama is a corrupt or unstable nation under the influence of a dictator still remains - despite Noriega being overthrown in 1989 and residing in a Florida prison.

There is also concern that too much high rise building along the coastline will damage the country's appeal in the long-term, causing some developers to wait and see if the government will step in to regulate construction.

Real estate consultant Jocelyn Carnegi, of Frontier Properties (which has a large resort development in the Pearl Islands off Panama City), said: Latin America has often been reported as the new destination for UK buyers especially - Brazil, Costa Rica and even Argentina. But given its proximity to the massive US market, advanced infrastructure and status as an offshore banking center, my money is on Panama.

In the past year, there has been increasing interest from UK developers and investors and recently London & Provincial won the tender for the Howard Airbase redevelopment which is worth more than 300 million pounds.

Panama is not just a country based on Canal dollars and tax-haven status. It has incredible biodiversity, nearly 200 skyscrapers are in construction and there is a property boom with strong growth projected for the foreseeable future.


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Virgin Holidays comes to Panama

By The Visitor Panama

Virgin Holidays, one of the biggest tour operators in the United Kingdom, has included Panama in its 2008 Caribbean brochure, released last week.

This is a "first" for Panamaâs tourist industry and especially good news for Bern Hotels, the Royal Decameron and Playa Blanca which will accommodate Virgin guests, and Copa Airlines which will ferry the holidaymakers to Panama from Cuba after their direct flight on Virgin Atlantic Airline from London.

Virgin Atlantic recently began scheduled flights to Cuba, which for Panamanian residents, could be a waystop to Europe as an alternative to the USA or Madrid.

One of Virgin Holidays main selling points is their "taste of adventure" theme under the banner "Panama Experience + Panama Beach" which offers Colonial Panama City, Boat trip on the Panama Canal, Aerial tram through the rainforest, Unspoiled rainforest and ecological trips, local indigenous Indian Tribes, and Pacific Coast Beach.

The two-week holiday which costs between £1,299 ($2,595) and £1,899 ($3,795) per person double occupancy, depending on dates, begins with a three-day breakfast-only stay in Panama City at the Crowne Plaza, with city tours, trips to Miraflores, Colon and the Free Zone and shopping which, with the exchange rate now over $2 to the pound sterling, will be a bonanza for the Brits.

Days 4-7 will be spent at Gamboa Rainforest Resort on half-board to "discover the secrets of the upper rainforest canopy" and visit the orchid and plant nurseries, the butterfly house and an Embera Village. A boat trip on the Canal is also offered.

After all this adventure, the guests will spend their last week at the all-inclusive hotels Playa Blanca or Royal Decameron on the Pacific coast.

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Panama Visitor - June 2007

Casino betting on the up and up
The growth of betting in casinos and on slot machines goes on. The Comptroller’s Office reveals that bets in this sector reached US$203 million in the first quarter, 12.3 percent more than in 2006.

Economic growth pattern continues
Income from the Panama Canal and the Colon Free Zone (ZLC) reflected growth in the first quarter of the year of 16.5 percent and 25.3 percent respectively, compared with the same period of 2006, says a report from the Comptroller’s Office.

Canal enlargement contracts coming up
The name of the first company to begin work on the first phase of construction of the Panama Canal enlargement will be known in July says the administrator of the ACP, Alberto Aleman Zubieta. He said that the documentation of the tender for the dry excavation at the Pacific entrance to the Canal, the design of the locks and the relocation of high voltage electricity lines is 75 percent complete.

Tourism figures up in 2007
More than 390,000 tourists visited Panama in the first quarter of 2007, an increase of 9.5 percent over the same period last year says the Comptroller’s Office.

Tour operators plan for World Fair
Panamanian tour operators will participate in the international World Travel Market Fair in London November 15 to 17, to promote the country as a new destination for European visitors. Almost US$13-million of the new IPAT global campaign budget will be used to attract Europeans, who tend to remain longer and spend more money.
COLON LATEST NEWS……COLON LATEST NEWS…. COLON LATEST NEWS….. COLON LATEST NEWS…….COLON LATEST

Earlier this year, it was announced that the Atlantic town of Colón would be the site of Panama’s first wholesale merchandise mall, dubbed Panama International Merchandise Mart (PIMM). Now developers of the billion-dollar project say the money is rolling in and discussions with the World Bank may result in a $50 million loan.

The mega-mall, to be constructed near the Colón Free Zone, will offer Latin American and Caribbean wholesale buyers greater convenience closer to home. It is anticipated that more and more of these buyers will need an alternative marketplace to the U.S., where heightened visa restrictions can be an obstacle to doing business.

PIMM has already received over 87 applications from companies (mostly Chinese and Indian factories) interested in showroom space. These parties will offer a wide range of products, such as textiles, foodstuff, health care products, household appliances, communications and mechanical equipment, building and decorating materials, and petrochemicals.

Additional possibilities for PIMM include a strategic alliance with Dallas Merchandise Mart (the group that operates the Shanghai Merchandise Mart). Also, a New York-based investment-banking group has shown interest in the project—not for showroom space, but for the purchase of some $48 million worth of shares. The Panamanian government indicates that it too will give support, but details have yet to be confirmed.

The PIMM complex will house nearly 5,000 showrooms for international manufacturers, as well as convention and expo centers, hotels, offices, residential and visitor accommodation, and banks. Construction of the 92-acre complex begins this year and is scheduled for completion in 2015.

If the project is as successful as expected, it may contribute to the revitalization of Colón. The once-pleasant seaside town has a great deal of potential and some of its best samples of early 1900s architecture are undergoing slow renovation.

Rumor has it speculators are starting to sniff around in anticipation of Atlantic-side Panama Canal expansion works.

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Brothers win £5bn Panama City deal

Daily Telegraph, UK
By James Quinn

Two of the UK's most secretive property investors have won an auction to redevelop the former United States Howard Air Force Base in Panama City in a $10bn (£5.1bn) project.

Ian and Richard Livingstone have secured the rights, through their London & Regional Properties vehicle, to one of the largest development deals ever recorded. The brothers fought off competition from US-based property company Eastern Group in the final round of bidding, with L&R's $750m bid winning the day.

The famous former airbase, which overlooks the Panama Canal, was brought to the market by a department of the government of Panama, advised by the World Bank. The deal is due to be ratified by the Panamanian government shortly and will complete next month.

L&R's development director Jason Mills has spent much of the past two years working on the bid. The company has worked up a phased 40-year master-plan for Howard to deliver a new city district of some 60m sq m of development worth an estimated end value of $10bn.

Mr Mills said: "This is a once-in-a-lifetime opportunity for one company to plan and deliver an entire new city district."

L&R's plans include a range of homes, hotels, and leisure resorts, as well as a large industrial zone, science park and welfare projects - in effect, a whole new city. The company will work with local partners and industrialists Jaime and Isaac Gillinski. The deal marks a new phase for L&R, which until last year focused on the European and Russian real estate markets.

L&R manages assets worth £7bn, including the Park Lane Hilton and the Empire in Leicester Square. The reclusive brothers are estimated to have a personal fortune in excess of £750m between them.



 

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