Transcript Kingfisher Bay is an excellent opportunity in Panama

KINGFISHER BAY
PANAMA
INVESTMENT INFORMATION
May 2012
INVESTMENT INFORMATION
TABLE OF CONTENTS
1. KingFisher Bay
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Kingfisher Bay, Panama
2. Development Opportunities
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3.
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4.
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Information about the country
Information about the region
Kingfisher Bay
Introduction
The concept
Development highlights
Masterplan
General Information
Valuation
Contact Details
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KingFisher Bay
KINGFISHER BAY, PANAMA
KINGFISHER BAY, PANAMA
The Archipelago is located approximately 50 nautical miles Southwest of the bustling Panama City, in the Pacific Ocean. The
largest island of the archipelago is called Isla Del Rey, on which two properties adjacent to each other, totaling 1,500 hectares
(15,000,000 sqm).
Extensive workshops were held , the renowned master planners EDSA and SB Architects (both companies from Florida, USA), to
come up with an exciting, well thought masterplan.
A lot has been achieved to comply with regulations, both on a legal and technical side, to obtain environmental and
development permits for the project.
KINGFISHER BAY, PANAMA
The following has been achieved:
• The Category 1 Environmental Impact Study for the preliminary master plan has been approved by the local environmental
protection authority (ANAM).
• Environmental Impact Studies for selected areas in the primary phase of construction have been submitted for approval by
the local environmental protection authority (ANAM).
• Also in the process of completing the construction documents for Phase 1 and masterplans for Phase 2 and Phase 3 with
local architects.
• In order to apply for a local building license, it is necessary to get 1) the Ministry of Housing’s (MIVI) approval of the final
masterplan and construction documents, and 2) the Environmental Impact Authorities' (ANAM) approval.
• A request has been submitted to the Tourist Authorities (IPAT) as part of the project qualification for the government tax
exoneration for tourism projects, as well as the property tax exemption for future properties for 20 years.
• The steps mentioned above have been taken some years ago, so an update is necessary !
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Development Opportunities
INFORMATION ABOUT THE COUNTRY
INFORMATION ABOUT THE REGION
INFORMATION ABOUT THE COUNTRY
HISTORY
The history of Panama has always been influenced by its strategic
location
From 1903 to 1968, Panama was controlled by powerful commercial
oligarchy. But the army was gaining its influence.
The financial and strategic interests of the US momentarily coincided with
the sentiments of Panama's revolutionaries. November3rd 1903, a
revolutionary junta declared Panama independent, with the support of
the USA.
The canal treaty granted the USA rights in perpetuity over land on both
sides of the canal and a broad right of intervention in Panamanian affairs.
Panama formally regained control of the canal in 1999.
In 1994 Ernesto Pérez Balladares took office. Under his direction, the
government implemented a program of privatization and focused on
infrastructure improvements, health care and education.
In October 2006, Panamanians voted in a referendum to expand the
Panama Canal. The ambitious job-creating project started in September
2007, and will see the canal's system of channels and locks widened and
improved to make it suitable for modern supertankers and to cut waiting
times. The hefty multi-billion dollar construction bill is expected to be
funded by an increase in canal tolls and foreign investment.
INFORMATION ABOUT THE COUNTRY
ECONOMY
The balboa has been tied to the US dollar (which is legal tender in Panama) at an exchange rate of 1:1
Because of its key geographic location, Panama's economy is service-based, heavily weighted towards banking,
commerce, and tourism. Since taking office in 1994, President Perez Balladares has advanced an economic reform
program designed to liberalize the trade regime, attract foreign investment, privatize state-owned enterprises, institute
fiscal reform, and encourage job creation through labor code reform. The government privatized its two remaining ports
along the Panama Canal in 1997 and approved the sale of the railroad in early 1998. It also plans to sell other assets,
including the electric company. Panama joined the World Trade Organization (WTO) and approved a tariff reduction that
will give the country the lowest average tariff rates in Latin America. A banking reform law was approved by the
legislature in early 1998. The most important sectors driving growth have been the Panama Canal and other shipping and
port activities.
INFORMATION ABOUT THE COUNTRY
INVESTING IN PANAMA
Progressively, Panama turned into a politically stable, economically prosperous and highly desirable location
• Dollar based economy with low inflation
• No natural disaster risks (no hurricane, earth quake )
• Stable economic and political environment
• Capital financing availability
• Positive outlook of tourism activity backed by
government
• Legal protection of investments
• Strategic location with easy international access and
communications
• Availability of qualified and bilingual people
• Mid-level infrastructure
• Transparent property register system
• Recent approval for extension of Panama canal
• Unspoilt natural resources and attractions
• Land suitable and available for developments as freehold
and leasehold
• Short term approvals process
• Low direct and indirect costs
• Favorable taxation and exemptions
• Foreign capital outflows safety
• Increased destination of choice for North American
retirees
INFORMATION ABOUT THE COUNTRY
TOURISM HIGHLIGHTS
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The Travel & Tourism Economy is expected to grow by 4.7% per annum in real terms between 2009 and 2018 (WTTC).
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Between 2008 and 2018, the tourism demand should grow by 91% (WTTC).
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For the same period, Capital Investment in Travel & Tourism Economy is forecasted to increase by 14,4%, where
Latin America is estimated to increase by 8,1% (WTTC).
INFORMATION ABOUT THE COUNTRY
TOURISM HIGHLIGHTS
More Tourism Figures
INFORMATION ABOUT THE COUNTRY
REAL ESTATE
Panama's government offers exceptional incentives for foreign
investment, such as tax exemptions on property taxes from 10
to 20 years
Attractive prices and greater value for money are the real
attraction of Panama
No restrictions on the foreign acquisition of property
Mortgages for real estate are readily available to foreign
investors. Panama banks such as HSBC are willing to finance
70% of the total value of the property to foreign investors who
can show documentation of good credit and income.
Panama is considered the financial hub of Latin America and the
vast number of banking institutions in Panama and the
Panamanian standard of using the U.S. dollar for all banking and
commerce lends itself to easy financing compared to other
neighboring Latin American countries.
There are limited capital controls. Funds can be moved back to
the country of origin, without restrictions or taxes of any kind.
However, banks are strict with opening accounts in Panama, and
each account must go through their approval process.
KEY HOUSE PRICE FACTS
Square Metre Prices
Rental Yields
Rents
Price/Rent Ratio
Price/GDP per Cap
Roundtrip Cost
Rental Income Tax
(Effective)
Capital Gains Tax
(Effective)
House Price Change 1 Year
House Price Change 5 Years
House Price Change 10 Years
Landlord & Tenant Law
GDP Per Capita
GDP/Cap Growth 1 Year
GDP/Cap Growth 5 Years
Economic Freedom Rating
Ec. Freedom 5 Years
Competitiveness
Rating
Property Rights Index
Currency +/- Value
Taxes on Residents
(Average Rate)
Source: Global Property Guide
$2,128
9.03%
$1,922
11 yrs
25.27x
0.08%
n.a.
10.00%
n.a.
n.a.
n.a.
Pro Landlord
$8,421
10.78%
61.36%
64.93
-6.68%
4.35
40
$0.62
n.a.
INFORMATION ABOUT THE COUNTRY
REAL ESTATE
Real Estate in the News
PANAMA: stable prices, yields strong
Prices in Panama have remained very stable over the past year, with
little sign of impact from the crisis in the US. Beachfront apartments
sell for around US$1,500 to US$2,200 per square metre (sq. m.), or
US$140 to US$205 per square foot.
Apartments away from the beach sell for slightly less.
Gross rental yields remain good, ranging from 8% to 9.3%, with not
much difference between apartment sizes. Gross rental yields have
somewhat declined over the past 2 years on smaller apartments, but
have arguably improved on beachfront apartments.
Last updated: Feb 10,2012
Investment hotspots
In 2009 Forbes named Panama as one of the
ten best retirement havens in the world.
Panama’s advantages include ease of access
from the US, world-class amenities, good
beaches, low cost of labour and low taxes.
Panama City has been a long-time favourite
of foreign nationals. It is divided into two
main areas – the old colonial town of Casco
Viejo, and the modern business and shopping
district of high-rise buildings and malls
Last Updated: Nov 30,2011
INFORMATION ABOUT THE COUNTRY
KINGFISHER BAY’S VALUE PROPOSITION
Kingfisher Bay outperforms regional competition with its unique and complete value proposition
KINGFISHER BAY
PLAYA BLANCA
VISTA MAR
VIVEROS
RED FROG
BEACH
BUENAVENTURA
Product Offered
Area M2
Sales Price
per M2
Sales Price
USD$
Beach Front Residential Lots
Ocean Views Residential Lots
3,000
2,000
225
180
675,000
360,000
Interior views Residential Lots
2,250
124
280,000
Condos Beach Front
200
3,300
660,000
Villa's
190
3,289
625,000
Beach Front Residential Lots
2,000
100
200,000
Ocean Views Residential Lots
2,000
85
170,000
Interior Views
2,000
65
130,000
Condos
120
1,031
123,720
Beach Front Residential Lots
1,200
250
300,000
Ocean Views Residential Lots
1,200
224
269,004
Condos
181
836
151,000
Beach Front Residential Lots
4,800
131
627,500
Ocean Views Residential Lots
5,000
109
543,700
Interior views Residential Lots
6,800
100
677,000
Villa's
Beach Front Residential Lots
Ocean Views Residential Lots
Interior views Residential Lots
Condos Beach Front
Villa's
Beach Front Residential Lots
Ocean Views Residential Lots
574
2,000
2,000
2,000
132
137
5,500
5,500
1,075
480
166
110
3,984
1,825
100
45
617,546
960,000
332,000
220,000
586,000
250,000
550,000
247,500
Interior Views
5,500
30
165,000
Villas
Apartments
750
142
200
757
150,000
107,500
Total units
offered
Country club
Golf club
Spa-health
club
Sports
facilities
Access to
own airport
Marina village
with retail
stores
393
X
X
X
X
X
X
1,000
X
X
1,000
X
X
X
X
X
X
350
830
700
X
X
X
X
X
X
This information is several years old and needs to be updated
X
INFORMATION ABOUT THE COUNTRY
ATTRACTIVENESS
Climate and safety along with its infrastructure of services and tourist attractions,
have made Panama a paradise to enjoy
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Over 1,500 exotic islands and beaches
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Fascinating historical places
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The old town of Panama is on the World Heritage list
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Exuberant natural beauty
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Panama City is a metropolis
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Sophisticated night life and shopping
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First class health services and medical care
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Local Native Cultures
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World class adventures in sailing, diving and fishing
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Far from hurricane corridor
INFORMATION ABOUT THE COUNTRY
DIRECT CONNECTIONS
With its central location, Panama is an excellent alternative for US & Latin American residents seeking
holiday, second home and retiring destinations
INFORMATION ABOUT THE COUNTRY
CLIMATE
Panama’s tropical climate has two seasons, one dry and one rainy. Variations
depend on the region and altitude. The Caribbean coast sees rain year-round,
while the Pacific coast has a more pronounced dry season. The Azuero
Peninsula has an extremely arid climate during the dry season. In contrast,
the mountains get plentiful rain during the wet season.
Panama is tropical, but temperatures vary according to location and altitude.
The annual average temperature on both coasts is 29°C (84°F), and it ranges
from 10° to 19°C (50 to 66°F) at various mountain elevations. There is little
seasonal change in temperature, with warm days and cool nights throughout
the year. Humidity is quite high, however, averaging 80%. Rainfall averages
178 cm (70 in) in Panama City and 328 cm (129 in) in Colón. The period of
lightest rainfall is from January to March.
INFORMATION ABOUT THE REGION
LOCATION DESCRIPTION
Las Perlas is an Archipelago located in the Panama Bay divided in two main groups of
islands. The Northern group is very close to the Isthmus, and with clear weather
conditions, is distinguishable from Panama City. The Southern or main group is made up
by more than forty islands of different sizes and shapes. The largest island is Isla del Rey,
followed by Isla San Jose and Isla Pedro Gonzalez.
This archipelago is considered one of the most important and beautiful in Panama. It is
made up of more than 100 islands and islets that with their paradisiacal beaches and
fine white sand have attracted thousands of tourists from all over the world.
This magnificent group of islands is just 20 minutes by air from Panama City (50 nautical
miles). It has the second largest coral reef in Panama and is famous worldwide for deepsea fishing.
Additionally, the Bay of Panama acts as a natural barrier and protects the Archpelago
from the ocean’s currents, storms and other inclement weather.
The Archipelago is made up of a series of large islands such as Isla San José, Pedro
González, Isla Contadora and Isla del Rey, which is the largest of the group with its
famous Punta Cocos considered as one of the most attractive spots for sport fishing.
INFORMATION ABOUT THE REGION
GEO-STRATEGIC LOCATION
Kingfisher Bay is an excellent opportunity in Panama
• Located 50 miles South of Panama City within the Gulf of
Panama, Pacific Ocean on the largest of the Pearl Islands, Isla
del Rey
• 20 min flight from Panama City
• Easily accessible by boat
The project location, Isla del Rey, is the largest island in the region
Kingfisher Bay, an eco-tourism resort, is located in one of Panama’s most pristine areas :
• Isla del Rey is the largest island in the region with several forms of accessibility
• The natural experience is the greatest asset with unique fishing opportunities
• Site is amidst an area of unspoiled forest reserves, with pristine beaches and wildlife
• A rich variety of flora and fauna thrives in Panama
INFORMATION ABOUT THE REGION
KINGFISHER BAY LOCATION
Isla del Rey covers approximately 74,000 acres
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It is a lush tropical island with an abundance of water including various waterfalls, rivers and natural springs
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The surrounding waters are pristine, and teeming with marine life such as whales, dolphins, sea turtles, and game fish (marlin, tuna)
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The sport fishing in the Pearl Islands is world renowned with over 200 International Game and Fishing Association records that have
been set here
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The natural experience is the greatest asset with unique fishing and diving opportunities
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Rich variety of flora and fauna thrives in Panama
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The main village on this island is San Miguel
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Kingfisher Bay project covers 1,500 hectares, one of the largest properties on Isla del Rey
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KINGFISHER BAY
INTRODUCTION
THE CONCEPT
DEVELOPMENT HIGHLIGHTS
MASTERPLAN
LEGAL STRUCTURE AND STATUS
KINGFISHER BAY
INTRODUCTION
The project can maintain a true experience by developing less than 80% of the total surface available
and maintaining the rest as untouched pristine area
• Nature is the greatest asset with unique fishing
opportunities
• The site is an area of unspoilt forest reserves, with pristine
beaches and wildlife
• The project has been developed in harmony with the
environment
• 1,000 building plots with optional villas, 100 marina
apartments & 60 beach bungalows to be developed over 3
distinct phases
• Located on the biggest island in the region with
accessibility
• For a direct access, a Marina and an Airstrip will be
developed
• Beautiful beaches
• Beach club for residents
• 18-hole golf course is planned in Phase II
• 220 luxurious hotel/condo units
• Spacious units of 140 sqm to 430 sqm priced from USD
300,000 to USD 1,500,000
KINGFISHER BAY
THE CONCEPT
• quiet, luxurious and healthy place to live
Body & Mind
• luxurious living close to an exotic environment
• ability to be alone or to meet people and socialize
• immaculate service on request
Service & Experience
• possibility to experience the local social and cultural life
Green & Socially Responsible
• Responsible and aware of ecological system and environment
Investment
• carefree, with capital gain and ongoing income
KINGFISHER BAY
DEVELOPMENT HIGHLIGHTS, PHASE I
Due to the size of the land, it is wise to develop the project in three main phases
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Phase I of the development consists of approximately 115
hectares, including the following:
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209 single family plots with an average size of 1,500 sqm. The
plots are offered with an optional turnkey product. Six Estate
Villas to choose from were designed together with SB
architects.
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153 Marina Village one to three bedroom apartments and
Town Houses.
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56 Beach Bungalows together with a multi functional Beach
Clubhouse with a restaurant, swimming pool and gym.
•
A 5 star Condo Hotel integrated into the Marina Village will be
developed offering in total 180 hotel / condo units. Part of the
units are most probably to be sold as fractional.
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Facilities include a marina of approximately 100 slips, a
commercial center and an Airstrip.
MASTERPLAN
GENERAL PLAN
Phase
III
Phase
II
Phase I
MASTERPLAN
PHASE I
Golf course (Phase II)
MASTERPLAN
PHASE I
Phase 1: 115 hectares
 209 single Estate Lots
 153 Marine Villa Condos
 56 Beach Club Villas
 1 Condo Hotel with 180
units
 100 Boat Slips
Phase I includes: Marina, Marina Village, Beach Club, residential lots, 100
units of Condo Hotel, 80 units of Boutique Hotel and
landing strip. The infrastructure of the development
includes telephone, internet, television and household
water.
MASTERPLAN
PHASE I
The Marina Village
The Marina Village will be developed with a
Spanish colonial design, including a retail area,
restaurants & bars and common areas.
The Marina Village will be of Spanish colonial
design with a central retail area, restaurant,
bars and commons areas with 153
condominium units located on the perimeter
of this unique village design. The
condominiums will be constructed over 3 and
4 floors.
MASTERPLAN
PHASE I
The Beach Club Village
The Beach Club villas will be accessed by paved streets and paths
leading to the main roadway system located above the Beach Club
Village. Turning right on this road brings you to the Marina Village
and Marina.
A total of 56 Beach Club Villas will be located in front of one of the
larger beaches with panoramic views of the bay area and marina.
These villas will rest within the tropical landscape following the
sloping terrain to ensure that every villa has a view of the bay.
MASTERPLAN
PHASE I
The Beach Clubhouse
A 1,300 sqm Beach Clubhouse will be located in front of the
beach shared by the Beach Club Villas. A lap pool and
recreation swimming pool with ample deck area will be
emplaced with natural tropical beach setting along side the
Beach Clubhouse. The Clubhouse will contain among others a
restaurant, a bar, and a spa.
MASTERPLAN
PHASE I
Facilities
• Marina Village includes a commercial center , restaurants & bars
• Marina
• Airstrip
• Condo Hotel with swimming pool, spa, restaurants & bars
Marina Village
• Condominiums
• Shopping area
• Marina services
MASTERPLAN
PHASE II & III
Phase II: 250 hectares
 100 single estates lots
 300 residential villa lots
 (Planned for later)
Phase II is planned to be located to the West of Phase I. In this phase
the development will be focused on more private plots and villas.
Approximately 400 plots have been anticipated. In addition to the
villas, an 18 hole championship golf course is planned with golf club
house, tennis courts, restaurant and lounge. A retail area plot is
planned for grocery store and general goods.
Phase
III
Phase III: 325 hectares
 81 single estates lots
Phase
II
 248 residential villa lots
 (Planned for later)
Phase III is on the Coat line, North of Phase I, on the property with
approximately 400 plots for Estate Villas + Condos
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INVESTMENT PROPOSAL
THE VALUE
OBLIGATION OUT OF COMPANIES
PROPOSITION FOR PARTICIPATION
INVESTMENT INFORMATION
OWNERS & VALUATION
Project
• Dimensions
Kingfisher bay, Panama
Officially registered 1500 ha (measured 3000 ha), divided in 4 plots:
- 2 plots owned by Kingfisher Bay Developments SA
Total 7 + 43 = 50 ha
- 2 plots owned by Inversiones Isla del Ray SA
Total 150 + 1.300 = 1.450 ha (1500 ha bigger according to measurement)
• Owners
- Natural Synergy SA (PA) is owner of the Kingfisher Bay Development SA (PA) and Inversiones Isla del
Rey SA (PA);
- Natural Synergy BV (NL) is 100% owner of Natural Synergy SA
- La Perla Investments BV (NL) is 100% owner of Natural Synergy.
• Bank Finance
None
• Valuation
June 2011
Market value USD 31.800.000 (based on 1.500 ha)
(Valuation by Avinco, Panama)
Based on actual size (3000 ha) this value will be increased to USD 61.800.000
Dec 2007
Market value USD 38.300.000 (based on 1.500 ha)
(Valuation by Deloitte)
INVESTMENT INFORMATION
CONTACT DETAILS
Available information:
• All relevant documentation referring to ownership, rights of beneficiaries and licenses
• Valuation reports (Avinco)
• Report September 2011 from recognized independent Dutch advisors regarding the valuation and all relevant
documents and agreement.