Panama Advisory International Group and are pleased to present this prime land bank and development opportunity in the next resort frontier - Panama. The sun rises over this 1,200 acres of prime, oceanfront property to reveal pristine beauty found only in a few places of the world, one of them here in the southwestern coast of the Azuero Peninsula of Panama. Exclusive Advisors to Panama Coast LLC
Panama City is within a short flight from most major metropolitan Cities in North, Central and South America and Europe making it accessible to a large audience. In much the same fashion as neighboring Costa Rica, Panama is emerging now as a prime destination for North American and European tourists including those seeking second homes or retirement alternatives. International tourism has more than doubled since 1994 to over 900,000 visits per year, increasing 15 percent between 2007 and 2008. Panama City is just 2.5 hours by plane from Miami and already receives more than 400 international flights including daily flights from Dallas, Houston, Atlanta, Newark and Los Angeles.
Affluent North and South Americans are flocking to Panama not only for its easy access but also for its natural beauty that includes such diverse and pristine ecosystems as tropical rain forest, virgin beaches, and volcano high-altitude mountain environments, which rival any destination in Central America. Let us now leave the City and learn more about this wonderful country. American dollar is legal tender; the Panamanian Balboa is tied to the U.S. dollar at a one-to-one exchange rate, which provides further stability to the national economy. The country s economy has been growing at a strong and sustained rate in recent years, driven primarily by expansion of the Panama Canal and increased tourism. See the section on Development Incentives in Panama, news on the Panama Canal and why to invest in Panama at the end of this brochure. Another attractive draw for international tourism is that Panama offers a modern healthcare system with American-trained, Englishspeaking doctors and several top hospitals and clinics that meet U.S. standards, yet the cost of health care services is a fraction of comparable costs in the U.S. Finally, Panama continues to enjoy a unique relationship with the U.S. characterized by a deep commitment to the preservation of its security situation and the rule of law, resulting from the Canal s strategic importance and the scale and international significance of its banking system.
In summary, Panama is a phenomenally beautiful and diverse country with infrastructure that rivals many developed nations. Its unique beauty and potential have begun to attract international recognition, showing that Panama is in fact the next resort frontier of the Americas. It is time for arrival at Playa Quebro in Azuero. As we pass over the property, we can appreciate the beach, the estuary and the coastal qualities found only in a few areas of the world and just a 45 minute flight out of Panama City.
The subject property has a private runway that is 5,000 feet long and can be expanded in the future. Air Panama has indicated an interest in opening domestic flights to this airstrip, as soon as demand justifies. In the meantime it would be long enough to accommodate private and charter flights, including private jet aircraft, providing endless possibilities for convenient access from anywhere in Panama and abroad.
This lowland section of the property consists of approximately 247 hectares or approximately 610 acres and is well suited for a golf course community. THE INTERIOR TRACT
Panama lies at the crossroads of the Western Hemisphere, where North and South America meet and the Caribbean almost reaches to the Pacific Ocean, connected by the Panama Canal. In the middle of the country is a peninsula that faces south, jutting into the Pacific like a green wedge, and caressed by the Trade Winds. This is a mountainous region given over to cattle raising, with small towns dotting the coast and villages in the interior. This is Azuero www.azuero.rixcerezo.com
Situated on the west-facing Pacific coastline of the Azuero Peninsula, approximately 40 miles south of Santiago, Panama, the property is accessible via a newly paved highway. Electrical lines provide power to most of the property extending down to the water. Interior roads provide access to all the tracts and are in the process of being improved. As we access the highland tract from the paved highway, we can appreciate the potential for ocean views from hundreds of lots that could be developed with west facing exposure. The highland tract consists of approximately 108 hectares or approximately 267 acres. This tract extends to the south and east with gently sloping terrain reaching heights of over 650 feet offering spectacular sunset views of the Pacific Ocean. THE HIGHLANDS TRACT
As we head down towards the Ocean we come to the Island tract consisting of 105 hectares or approximately 259 acres, boasting four secluded beaches and approximately 1.75 miles of ocean frontage, all west-facing views of the Pacific Ocean and Cebaco Island. As we pass through the lush landscape we come to a stream feeding a waterfall and pool that runs all year long.
The ocean views are incredible and must be seen to be appreciated. Some of the oceanfront tracts may be more suitable for large estate homes such as the ones being currently developed adjacent to the property,
One of the ocean front tracts consists of approximately 24 hectares or approximately 60 acres and has 1800 feet of water frontage. There are numerous pads for large estate homes already cut in off the roads with power to the property. There is an excellent supply of water with wells generating surplus amounts even in the drier months of the year.
Here is a view from a larger pad on the north end with beaches on either side.
Here is a view back at a large pad that is seperated from the rest of the others by a primary forest still populated by monkeys and wnumerous varieties of bird life.
Part of the property fronts the Quebro River and El Salto Creek and an adjacent port offers the opportunity of a marina development to service the property. Larger boats have accesed this body of water.
Numerous beaches border the property offering additional opportunities for ocean oriented activities.
One of the beaches on the property is situated just below two large building pads and would be ideal for one of several resort buildings that could be developed on the property.
From this beach you enter clear calm waters and the adjacent topography is ideal for a beach activity center with restaurant pool and bar.
For the more active lifestyles the area offers and abundance of other activities. Cerro Hoya national park, an 80,000 acre park created to protect numerous species of plant and animal life endemic to the Azuero region, is just 10 minutes from the site and offers excellent hiking and exploration opportunities that could be part of the many tours from an onsite rainforest and wildlife discovery center.
The property is a short boat ride to Isla De Ciba, a UNESCO World Heritage site. Totaling 650,000 acres, Coiba is one of the most extensive marine parks in the world, and its nearby deep waters attract diving and sport fishing enthusiast from around the world.
The crystal clear waters offer divers one of the most spectacular underwater playgrounds in the world. Playa Quebro is truly destined to become a world class resort and residential development centered around a golf course and marina. Plans envision at least one boutique hotel, a Five Star international resort, high-end condominiums and low density single family. Other amenities would include hiking, horseback riding, biking, equestrian facilities and boating.
Panama Development Incentives Law Number 8 (Enacted in 1994) is the most comprehensive law for the promotion of tourism investment in Latin America. The incentives and benefits under this law are available to natural persons or companies engaged in tourist activities registered at the National Registry of Tourism (Registro Nacional de Turismo) and certified by the Panama Government Tourism Bureau (Instituto Panameño de Turismo - IPAT). These include public lodgings, tour agencies, tourist transport services, tourist restaurants, discotheques, nightclubs, recreational or theme parks, zoos, convention centers, and marinas. The incentives for tourism investments include: 20-year exoneration from real property taxes (including land) 20-year exoneration of import duties of all materials, vessels, vehicles, and equipment used to build and furnish public lodging establishments. Exoneration from any tax or assessment on its capital. Exoneration of all fees for using piers, airports or heliports. Income tax exemption on interest earned by creditors of public lodgings. 10% annual real property depreciation (not including the cost of the land). DEVELOPMENT ZONES OF NATURAL INTEREST are specifically designated areas for tourism development. THESE BENEFITS INCLUDE: Twenty (20) years full exoneration from the payment of real property tax on the land or any improvements owned and being used for tourist development activities. Fifteen (15) years full exoneration from the payment of income tax. Twenty (20) years full exoneration on import duties and sales tax on imported materials, equipment, furniture, accessories and spare parts used to construct, renovate and furnish their establishments. Twenty (20) years exoneration from duties, contributions, taxes or fees on the use of piers or airports built by the company. The Government of Panama may use these facilities free of charges, according to the appropriate regulations. Twenty (20) years exoneration from the payment of income tax on interest earned by its creditors from tourist activity operations. Time limits to begin your construction, restoration or maintenance are six (6) months from the date you register with the National Tourism Registry unless an extension is granted from IPAT.
Why Panama? I am often asked why would you do business in Panama? Panama Canal expansion a cornerstone of the global transport system Panama Qatar Occidental Petroleum Oil Refinery Agreement Major Corporation relocating or opening new offices - Dell, Caterpillar, Singapore Airlines Colon Free Trade Zone ( CFZ ) is the largest free zone in the Americas and the second largest in the world. Latin America remains resilient to the international credit crunch. Fitch Global Sovereign Review expects LatAm including Panama to maintain relatively healthy growth rate. Gross Domestic Product has reached rates of 4.1%, 6.0%, 6.4%, 8.1% 8 % during 2004, 2005, 2006 2007 and 2008 respectively. Investment Stability Law provides a 10 year stability as of the registration of the investment that all legal, tax, customs, municipal and labor rules will remain identical to those in force at the time of registration. This is an important guarantee to secure no-changes will affect the amortization of investments. Panama is at the top of the list of the Latin American countries with best access to capital. The US dollar has been Panama s currency since 1904, although it is called the Balboa for nationalistic reasons.
The Panama Canal Panama Canal Upbeat on the Future; Expansion Work Continues to Move Forward On-Time and On-Budget Date: 23-A P R -2009 CANAL VP BRIEFS SEA ASIA 2009 ATTENDEES ON TRAFFIC PROJECTIONS, ECONOMIC SLOWDOWN AND EXPANSION REINFORCES CANAL'S VALUE AND COMPETITIVE POSITION SUNTEC CITY, Singapore, April 23, 2009 - Thousands of maritime and trade industry professionals joined Panama Canal Authority (ACP) representatives in Singapore this week for Sea Asia 2009 - the world's largest shipping conference. During Thursday's session, "The Charterer's Forum," Vice President of Research and Market Analysis Rodolfo Sabonge briefed attendees on a range of issues from traffic projections to the economic slowdown and the Canal's $5.25 billion Expansion Program. "As with any business during this time of economic uncertainty, we are monitoring trends and adjusting where necessary to ensure that we are maximizing all of the Canal's resources," said Mr. Sabonge. "The shipping industry, as a whole, has experienced tough times before. The same holds true for the Canal - we have gone through World Wars, Asian flu, the Iraq war, and other economic and financial upheavals in the world, but we have and continue to weather all the challenges that come our way - our business is grounded in its solid fundamentals, strategic vision, planning and sound management. And at the end of the day, the Panama Canal still is the best value in shipping." Mr. Sabonge also confirmed that the ACP remains focused on the expansion project, which continues to push ahead on-time and on-budget. He noted that March 2009 signaled another historic milestone when the ACP received bids from three world-renowned consortia vying to design and build the new locks. The bids are currently being evaluated and a decision will be made in the coming months. Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships. The ACP projects that the expanded Canal, with an expected completion of 2014, will further propel growth along the "All-Water Route" - which extends from Asia to the U.S. East and Gulf Coasts via the Panama Canal. Shorter-term forecasts also predict a positive turn. "Recent traffic statistics show that transits through the Canal have remained fairly constant. Vehicle carriers represent the principal segment mostly affected by the credit crisis, but our projections are already indicating traffic increases for next year," Mr. Sabonge added. About the Panama Canal Authority (ACP) The ACP is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The ACP is governed by its organic law and the regulations approved by its Board of Directors. For more information, please refer to the ACP's Web site: http://www.pancanal.com/
We also have complete due diligence material for Playa Quebro available for you upon request. The following confidentiality statements are designed to insure that the information is to be used solely for the purposes of determining the suitability of this investment and that the material contained herein is not duplicated or distributed to any other parties other than the reviewers without the express written permission of the Advisors. If you are a principal not represented by another broker please complete the Principal Confidentiality Agreement. If you are a broker or a principal being represented by another broker please complete the Co-Broker s Confidentiality Agreement. For additional information contact either: Tom Brymer at 507.6810.1074 in Panama or 304.448.1003 in the US and email at www.tbrymer@brymerpa.com or Roberto Eisenmann III at 507.6677.6759 in Panama and by email at www.roberto@eisenmannco.com
PRINCIPAL ONLY CONFIDENTIALITY AGREEMENT We seek your consent to confidentiality before releasing property descriptions for real property defined below (the Property ). The Owner s Broker as defined below, will permit the undersigned Principal (the Reviewer ) to examine and inspect certain documents, files and other information relating to the Property (the Confidential Information ). The Confidential Information may include economic, commercial, marketing and financial information that is propriety in nature. Defined Terms Owner s Broker Property Defined As Panama Advisory International Group Playa Quebro Therefore, we require the Reviewers to acknowledge acceptance of these terms as a condition of its review and inspection of the Confidential Information: 1. The Reviewers agrees that its review and inspection of the Confidential Information shall be solely to conduct due diligence. 2. The Reviewers agrees not to disclose any of the Confidential Information without prior written consent of Owner s Broker to any third party other than to its employees, officers and directors (including those of its affiliates). 3. In the event the Reviewers or any of its representatives fails in any respect to comply with its obligations under this Agreement, the Reviewers shall be liable to Owner s Broker for breach of this Agreement as well as attorney s fees in the enforcement thereof. 4. The rights, powers and remedies provided for in the preceding subsection shall be in addition to and do not preclude the exercise of any other right, power or remedy available to Owner s Broker under law or in equity. No forbearance, failure or delay in exercising any such right, power or remedy shall operate as a waiver thereof or precludes its further exercise.
PRINCIPAL ONLY CONFIDENTIALITY AGREEMENT Page 2 5. The Reviewers shall inform each of its representatives that receives any of the Confidential Information of the requirements of this Agreement and shall require each such representative to comply with such requirements. 6. The Reviewers agrees not to communicate with any other representative of Owner without prior written consent of Owner s Broker. 7. The terms and conditions of this Agreement shall remain in full force and effect as to the Property whether or not any agreement is reached for the Purchase and Sale of the Property. The Reviewers shall destroy, or at Owner s Broker s request, deliver to Owner s Broker any compilations, studies or other documents or records that contain or reflect Confidential Information relating to the Property in the event an agreement is not reached for the Purchase and Sale of the Property. 8. Owner s Broker makes no warranties or representations regarding the physical conditions, zoning, environmental, title or other matters as it relates to the Property and the Reviewers acknowledges that it must undertake it s own due diligence investigations. 9. The Reviewers acknowledges that the Owner s Broker may offer the Property to any third party, at the Owner s Broker s discretion. 10. The Principal Reviewer represents and warrants that it is not being represented by any broker or finder or person seeking a commission with the sale of the property and is not looking to the Seller for any finder s fees, commissions or other fees in connection with the sale of the Property
PRINCIPAL ONLY CONFIDENTIALITY AGREEMENT Page 3 This represents the entire understanding between the Reviewers and Owner s Broker relating to the treatment of Confidential Information heretofore or hereafter reviewed or inspected by the Reviewers. This Agreement supersedes all other agreements relating to such matters that have previously been executed by the Reviewers. If this reflects our understanding, kindly indicate below and return a copy to the Owner s Broker by email at tbrymer@brymerpa.com Acknowledged and Agreed to by Reviewer Principal Authorized Representative: Name: Email: Company: Address: Phone: Fax: Date:
CO-BROKER S CONFIDENTIALITY AGREEMENT We seek your consent to confidentiality before releasing property descriptions for real property defined below (the Property ). The Owner s Broker as defined below, will permit the undersigned Principal and Buyer s Broker (the Reviewers ) to examine and inspect certain documents, files and other information relating to the Property (the Confidential Information ). The Confidential Information may include economic, commercial, marketing and financial information that is propriety in nature. Defined Terms Owner s Broker Property Defined As Panama Advisory International Group Playa Quebro Therefore, we require the Reviewers to acknowledge acceptance of these terms as a condition of its review and inspection of the Confidential Information: 1. The Reviewers agrees that its review and inspection of the Confidential Information shall be solely to conduct due diligence. 2. The Reviewers agrees not to disclose any of the Confidential Information without prior written consent of Owner s Broker to any third party other than to its employees, officers and directors (including those of its affiliates). 3. In the event the Reviewers or any of its representatives fails in any respect to comply with its obligations under this Agreement, the Reviewers shall be liable to Owner s Broker for breach of this Agreement as well as attorney s fees in the enforcement thereof. 4. The rights, powers and remedies provided for in the preceding subsection shall be in addition to and do not preclude the exercise of any other right, power or remedy available to Owner s Broker under law or in equity. No forbearance, failure or delay in exercising any such right, power or remedy shall operate as a waiver thereof or precludes its further exercise.
CO-BROKER S CONFIDENTIALITY AGREEMENT Page 2 5. The Reviewers shall inform each of its representatives that receives any of the Confidential Information of the requirements of this Agreement and shall require each such representative to comply with such requirements. 6. The Reviewers agrees not to communicate with any Tenant, lender, accountant or any representative of Tenant without prior written consent of Owner s Broker. 7. The terms and conditions of this Agreement shall remain in full force and effect as to the Property whether or not any agreement is reached for the Purchase and Sale of the Property. The Reviewers shall destroy, or at Owner s Broker s request, deliver to Owner s Broker any compilations, studies or other documents or records that contain or reflect Confidential Information relating to the Property in the event an agreement is not reached for the Purchase and Sale of the Property. 8. Owner s Broker makes no warranties or representations regarding the physical conditions, zoning, environmental, title or other matters as it relates to the Property and the Reviewers acknowledges that it must undertake its own due diligence investigations. 9. The Reviewers acknowledges that the Owner s Broker may offer the Property to any third party, at the Owner s Broker s discretion. 10. The Principal Reviewer represents and warrants that it is not being represented by any other broker, except for the Buyer s Broker identified below and Buyer s Broker acknowledges and agrees that it shall accept a fee from the Seller of two and one half (2 ½ %) percent as the real estate commission in connection with any sale of the Property to the Principal identified in this Agreement unless Broker and Buyer s Broker enter into a different commission agreement acceptable to Owner.
CO-BROKER S CONFIDENTIALITY AGREEMENT Page 3 This represents the entire understanding between the Reviewers and Owner s Broker relating to the treatment of Confidential Information heretofore or hereafter reviewed or inspected by the Reviewers. This Agreement supersedes all other agreements relating to such matters that have previously been executed by the Reviewers. If this reflects our understanding, kindly indicate below and return a copy to us by email to tbrymer@brymerpa.com Acknowledged and Agreed to by Reviewers Principal Buyer s Broker Authorized Representative: Name: Email: Authorized Representative Name: Email: Company: Address: Company: Address: Phone: Fax: Date: Phone: Fax: Date: