Causeway Towers Isla Perico, Amador, Panama 0% Deposit
Introduction Panama is fast becoming one of the world's top ranked real estate investment destinations and also a world class tourist and leisure location, particularly for adventure and eco-tourism. Long overshadowed by its neighbors such as America, Mexico and Costa Rica where mass tourism is now the norm, Panama is emerging and quickly, from the shadows. Panamá currently has an undervalued real estate market; however as has happened in countries like Costa Rica and México, prices are beginning to rise fast as more people discover the advantages Panama has to offer. A land of contrasts, Panama gives tourists the opportunity of a visiting a cloudy mountaintop to a sunny beach, a city located skyscraper to the shade of the rainforest in just one day! The team at Bridge Property International is very excited about the potential of this development so we hope that the information you will find over the next few pages proves useful. If you do have any answered questions, be sure to drop us a line. Tel: +44 0293 763 028 Email: team@bridgepropertygroup.com www.bridgepropertygroup.com 2
The Opportunity Causeway Towers is a development located in the most privileged location of the Republic of Panama. Causeway Towers Apart-Hotel (Condo) consists of 0 buildings that surround the roadway that rises to the top of Perico Island at the Amador Causeway. To date, Causeway Towers is the only development of its kind in Amador. Its panoramic views towards Panama City are spectacular The development also comprises of a new marina development with a wide range of restaurants and shops. Each building consists of 2 Penthouses, 4 Suite Apartments, and 6 two Bedroom Apartments to be managed independently by the proprietors under the umbrella of the Apart-Hotel (Condo) if the investor so wishes. There shall be a total of 220 units in the investment pool and each building has 7 floors. Profit sharing shall be distributed in proportion of each investor after annual expenses. The calculations are based on an annual occupancy levels on 00% and 60% rental for 48 weeks, which leaves 4 weeks use for the investor. If the investor chooses not to enter into the umbrella of the Apart-Hotel a management fee will be charged as set out in the Budget of the Feasibility Study. Investors shall also enjoy the incentives & benefits obtained by Law 8 of the republic, by which tourist activities are promoted in Panama. These benefits include, but are not limited to income tax exemption for a period of 5 years, real estate tax exemption for a period of 20 years, among others. For a complete view of the benefits offered by Law 8 please referred to the Law 8. Other benefits for investors include the use of the facilities to be built as part of the Las Brisas de Amador Development, such as the private common areas of the hotel, the heliport, the water taxi area, as well as discounts in the 400 slips of the new marina, special invitations to arena events, etc. 3
The Location At the southern entrance of the Panama Canal is the Amador Causeway. This beautiful and picturesque causeway, lined with tropical palm trees, and with magnificent views of the Canal and the Panama City skyline, was built from excavated material during Canal construction. It took 8 million yards of solid rock extracted from the famous Culebra or Gaillard Cut of the Panama Canal to build this Causeway. The Causeway was formerly part of a military base, which has been transformed into a flourishing tourist attraction. Great restaurants, hotels, shopping arcades, marinas and a convention center provide an infrastructure that is attracting ever-increasing tourism. The causeway is also the home of the Marine Exhibition Center of the Smithsonian Tropical Research Institute (STRI), where visitors can see and touch exotic species of Panama's Caribbean and Pacific marine life, and learn about marine-coastal environments. An excellent paved pathway, the full length of the Causeway, is an irresistible temptation to anyone desiring a leisure walk, jogging, biking, skating or roller-blading. The causeway is also popular with locals and tourists who want to enjoy a swim in the Pacific Ocean; or simply relax with fabulous scenic views. The Amador Causeway, once the home of a US Army base, has quickly become one of Panama's most desirable tourist areas. The Causeway itself connects three small islands, Noas, Perico and Flamenco, with the mainland. Visited by both foreigners and locals alike, the Causeway has enormous tourist potential, with several large projects having already been completed and many planned for the future. The Causeway is located at the southeastern most tip of the Panama Canal, with spectacular views of Panama City and the Bridge of the Americas. While there, visitors can observe the numerous vessels that enter or depart the Panama Canal throughout the day, passing directly beneath the Bridge of the Americas. 4
The Causeway's most northern section, which is part of the mainland, is home to a new large international hotel, complete with pool and Fridays Restaurant. The Yacht Club is home to several dozen personal pleasure boats, and has a long dock which juts out into the Panama Canal. There is ample space for parking here, and the area is wide open and pleasant, with much of the walking area titled with red brick and lined with colorful trees and flowers. Heading south along the Causeway, the paved road narrows considerably, and becomes a long, single lane road in each direction; there is no place to park or stop along the Causeway itself. On both sides of the Causeway you'll find well maintained lawns, benches and ample walking space, which is used by couples, families with children, joggers, skate boarders, rollerbladers, and even a functioning horse carriage, which transports people along a portion of the Causeway. The first island you reach is Noas Island, which is home to the Smithsonian's Naos Laboratories. Just behind the Laboratory, within walking distance, you'll find the Marine Exhibition Center. (Visit their web site for more information). This is a must see for anybody visiting Amador Causeway. As you head further south along the Causeway you'll reach Perico Island, which sits off to the left side, facing the Bay Of Panama. There is a waterfront restaurant on the left side, which is popular among local and foreigners alike. Continuing along you'll reach Flamenco Island, which is at the southern most tip of the Causeway. On Flamenco Island they are completing the construction of a new cruise port and shopping facility. Currently, cruise ships anchor just off the Causeway and passengers are shuttled back and forth on tenders, however, plans to add a large docking facility are under review. Upon its completion, the cruise ship terminal will contain a wide array of boutiques/stores and commercial offices. The shopping complex which resides just behind the cruise port has additional boutiques and restaurants/bars, many of which offer a fine selection of both international and local cuisine. Quickly becoming one of Panama City's most popular tourist destinations, the Causeway is a must see for anyone visiting Panama. With gentle breezes that sweep along the Causeway, spectacular scenery and fine dining, the Causeway has something for everybody, regardless of your age or budget. 5
The Detail Bridge Property International - can offer investment in Causeway Tower Apart-Hotel (Condo) on the following Purchase Conditions: 0% on reservation of Apartment 20% on start of construction 70% on handover of Turn Key Title and Permits 6
Penthouse - 222 m2 Spectacular Master Suite Bedroom with bathroom en suite, Walk-in dressing room and Balcony with Jacuzzi having panoramic views over the bay and Panama City. Additional Bedroom with bathroom en suite and panoramic views. Spacious, open and fully fitted kitchen with dinning area. Living room with additional entertaining room which can be changed into a third Bedroom with closed balcony (with tinted windows). Balcony and terraces with panoramic views. Luxury Finishing, fully furnished and equipped for Hotel operator. Tinted windows, marble floors, marble bathroom, central air conditioning, TV connections, intercom, telephone connections with double speed ISDN, parking. 7
Apartment Suites - 222 m2 The layout of the Apartment Suites is equal to the Penthouse overleaf. Two Bedroom Apartments 93 m2 / 07 m2 Spectacular Master Suite Bedroom with bathroom en suite having Spacious Balcony and terraces with panoramic views. Luxury Finishing, fully furnished and equipped for Hotel operator. Tinted windows, marble floors, marble bathroom, central air conditioning, TV connections, intercom, telephone connections with double speed ISDN, parking. As part of the sale, all apartments will feature a fit out of furniture, fixtures and equipment. The fit out will be included as part of the price in the Sale, Purchase & Construction Agreements. 8
The chosen Hotel Operator will be the Operator for the Apart-Hotel (Condo). The Operating Agreement will be signed between the apart-hotel owner and the Hotel Operator. Owners will receive a yearly return calculated on the Basis of the revenue received from guest occupying the apart-hotels less costs incurred Prices in US$ Type No of Bedrooms Sqm. Price Per Sqm Purchase Amount Mortgage 70% Investment 30% Penthouse 2 222 5,000.0.000 777.000 333.000 Suite Apartm. 2 222 4.500 999.000 699.300 299.700 Apartm. Type A 2 93 3,750 348.750 244.25 04.625 Apartm. Type B 07 3,750 40.250 280.875 20.375 9
Feasibility Study Assumptions for all types of apartments Profit and Loss Statements. The Mortgage to be 70% of the purchase price for a 20 years term at 7% interest. Causeway Towers considers fixed operating costs for Apartments Type A and B to be $300/ month per unit or $3,600 per annum. Penthouses and Suite Apartments are $600 /month or $7,200 per annum. Variable costs, such as electricity, water, etc. are estimated @ 5% of income. The Hotel Operator will charge 0% at 00% occupancy and gradually down to 6% at 60% occupancy. Apartment rentals shall be daily and weekly. The estimated % per occupancy type and the prices has been determined based on a study of the hospitability industry, generally across both Panama City and in the area of Colon. The assumption is that in average each unit will be rented 80% on a daily basis and 20% on a weekly basis. Capital appreciation. Conservatively set at 7% per annum for 3 years. Penthouses and Suite Apartments Estimated Gross Penthouse: per day, Rented on a daily rate $595 and on a weekly rate $535 Suite Apartment: per day, Rented on a daily rate $550 and on a weekly rate $495 Rental type Penthouse Daily Weekly Total % per type 80% 20% Total No. of units Daily income 595 535 Weekly income 4,65 3,745 Monthly income 6,660 4,980 Annual 99,920 79,760 @ 00% Occupancy 59,936 35,952 95,888 @ 60% Occupancy 95,962 2,57 7,533 Suite Daily Weekly Total 80% 20% 550 495 3,850 3,465 5,400 3,860 84,800 66,320 47,840 33,264 8,04 88,704 9,958 08,662 The above numbers are subject to change; they are based on an estimate and are for revenue estimating purposes only. 0
Annual Estimated Net (Financing Considered) Penthouse Suite Apartment Occupancy 00% 60% 00% 60% 95,888 7,533 8,04 08,662 Costs: Fixed costs Variable costs 5% Hotel Operator 0% 6% Finance including instalments Total costs 7.200 9,794 9,589 72,288 08,87 7.200 5.877 7,052 72,288 92,47 7,200 9,055 8,0 65,060 99,426 7.200 5,433 6,520 65,060 84,23 Net 87,07 25,6 8,678 24,450 ROI % 26.% 7.5% 27.3% 8.2% The above numbers are subject to change; they are based on an estimate and are for net income estimating purposes only. Capital Appreciation Penthouse Suite Apartment Estimated future value of the property Purchase price Profit Estimated return on initial investment,359,798,0,000 249,798 75%,223,88 999,000 224,88 75%
Apartment Types A & B Estimated Gross Type A per day, Rented on a daily rate $200 and on a weekly rate $80 Type B per day, Rented on a daily rate $225 and on a weekly rate $200 Rental type Estimated % per type Total No. of units Daily income Weekly income Monthly income Annual @ 00% Occupancy @ 60% Occupancy TYPE A Daily Weekly Total 80% 20% 200 80,400,260 5,600 5,040 67,200 60,480 53,760 2,096 65,856 32,256 7,258 39,54 TYPE B Daily Weekly Total 80% 20% 225 200,575,400 6,300 5,600 75,600 67,200 60,480 3,440 73,920 36,288 8,064 44,352 The above numbers are subject to change; they are based on an estimate and are for revenue estimating purposes only. Annual Estimated Net (Financing Considered) Apartment Type A Apartment Type B Occupancy 00% 60% 00% 60% 65,856 39,54 73,920 44,352 Costs: Fixed costs Variable costs 5% Hotel Operator 0% 6% Finance including instalments Total costs 3.600 3,293 6,586 22,72 36,90 29,666 3.600,976 2,37 22,72 30,658 8,855 3.600 3,696 7,392 26,3 40,89 33,0 3.600 2,28 2,66 26,3 34,60 9,742 Net 28.4% 8.5% 27.5% 8.% ROI % The above numbers are subject to change; they are based on an estimate and are for net income estimating purposes only. 2
Capital Appreciation Type A Type B Estimated future value of the property Purchase price Profit Estimated return on initial investment 427,234 345,750 78,484 75% 492,549 40,250 90,299 75% To Conclude...why invest in panama? Location Panama is well connected internationally with direct flights from several US locations, as well as direct flights from Madrid. Economy Panama s dollarised economy rests primarily on a well developed service sector which accounts for three quarters of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, tourism and real estate development. Banking System Panama is an international banking centre with over 5 national and international institutions. Low mortgage programs and beneficial rates are readily available. Real estate developments have plentiful access to a stable and healthy Dollar funding for the building industry. Primary and second home mortgage opportunities are offered for nationals and foreigners. Safety Crime in Panama is extremely low. Violent crime is nearly non-existent. Infrastructure Panama City has a US or European like infrastructure with modern interstate highways, glass high-rises, new suburban housing gated communities, world class shopping malls and five star hotels and restaurants to enjoy. Low Price You can expect prime beachfront property at prices 50-75% lower than in comparable US and European locations. Panama s housing architecture and city infrastructures look and resemble US-built homes at a fraction of the cost. Health Care Panama s hospitals are on par with US or European facilities, at fraction of the cost. The new Punta Pacifica Hospital, which is due to be inaugurated in 2006, is affiliated to the world renowned John Hopkins Hospital, generally recognized as the leading healthcare institution in the USA. 3
Climate Panama has a year-round sunny climate with temperatures in the 80 s. The climate is similar to the Caribbean but with no hurricanes. Panama also lies outside any of the major fault lines and is therefore outside the earthquake zone. Geography One can choose real estate in cool mountainous areas and beautiful and fascinating nature in the rain forest. The geographic variety of the country will lend to any taste. For beach lovers, you can choose between the calm turquoise waters of the Caribbean coast or the dramatic waves of the pacific coast within just an hour s drive of each other, not to mention cool mountain rainforests, vibrant urban life or the paradise and ultimate indulgence of your own private island. Culture Panama is a mix of US and Latin American cultures. Enjoy a fun, laid-back lifestyle with all the comforts and mind sets of the US and Europe. GENERAL INFORMATION Official Name: Republic of Panama Capital: Panama City Official Language: Spanish is the official language but most Panamanians speak English fluently. Climate: Panama enjoys a tropical climate with an average temperature of 27 degrees Celsius throughout the year. There are two seasons: the dry season with a bright sun from December to April and the rainy season from May to November. Local time: GMT -5 Monetary unit: the Balboa which has the same value as the US dollar. The US dollar is legal tender in Panama by a 904 agreement between the two countries. Traveller cheques are accepted as long as they are issued by major companies (Visa, Mastercard) and they are in US dollars. The three major banks in Panama are Banco Nacional, Banco del Istmo and Banco General. They all change foreign currency and most of their branches now have ATMs. Major credit cards are accepted in more upmarket restaurants and hotels in Panama City and the larger provincial towns. Business hours: they vary from establishment to establishment but generally banks are open from 8am to 3 or 4 pm Monday to Friday while some of them are open on Saturday morning; business and government offices are usually open Monday to Friday from 8 or 9am until 4 or 5 pm; shops usually open Monday to Saturday from 9am until 6pm. Medical facilities: they are on par with the U.S. One of the great advantages for foreigners living in Panama is the high quality of medical care and large number of UStrained physicians and specialists. Geographical location: Panama is located in the middle of the American Continent. Through the East lies Colombia and through the west Costa Rica. It forms a natural isthmian bridge, 80 kilometres in its narrowest part that joins the Atlantic Ocean in the north with the Pacific Ocean in the south. Population: there is an estimated population of 2,329,329 (census 990) with 40% residing in Panama City. Constitution: th October 972. Religion: over 93% of the population are Catholic and 6% are Protestants. 4
Government: Constitutional Democracy. Political division: 9 provinces (Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos and Panama) and region (Kuna Yala). Electricity: 20V 60 HzHz The Republic of Panama is located in Central America between Costa Rica and Colombia. Panama is situated south of the hurricane track and generally not affected by these tropical storms. It is considered one of the safest countries in the world with the highest tourist safety rating. Its proximity to the U.S. (3.5 hours away) means anyone can book direct flights from Panama to seven major U.S. cities (New York and Newark, Miami, Los Angeles, Houston, Atlanta, Orlando and Toronto. The country has been rated as a number one place in the Americas for retirement by Modern Maturity, the magazine of the American Association of Retired Persons, and the number one place in the world by International Living. Panama prides itself for having one of the most modern airport and telecommunication infrastructures in Latin America. Spanish is the official language but English is broadly used. Panamanians are known for their warmth and friendliness. In the last years Panama has become one of the most important tourist destinations which offers countless attractions to the visitor: Tel: +44 0293 763 028 Email: team@bridgepropertygroup.com www.bridgepropertygroup.com.. Bridge Property Internactional offer the enclosed estimations and figures as guides for illustrative purposes only. These should not be used as official or recommended financial planning tools. The company is confident of all the figures quoted but clients should seek professional advice in all matters of overseas purchasing. The company will be pleased to recommend independent lawyers, mortgage brokers, foreign exchange, accountancy and tax firms. 5