Copywriting for Offering Memorandum for major community

Introduction to Playa Grande: A Joint Venture Opportunity in Panama
Table of Contents
Introduction of Opportunity
2
Panama: The Next Resort Frontier of the Americas
5
High-End Development is Blossoming in Panama
6
Playa Grande: In a Class by Itself
9
Preliminary Project Plans
10
Planned Amenities and Recreational Opportunities
13
Entitlement
14
Development Team
17
List of Additional Reports
18
JV Structure
20
A Joint Venture Opportunity
1
Introduction of Opportunity
An extraordinary development opportunity awaits
with lush tropical vegetation, and protected by
profit potential of this spectacular site. You are
you in the resort industry’s next frontier: Panama,
several picturesque islands. The new ownership is
cordially invited to consider participating in this
where the exquisite natural environment combines
in the process of master-planning this parcel for
highly promising project. If selected, you will join
with a favorable economic and political climate
development as Playa Grande, a top-tier oceanfront
a team of highly qualified professional consultants
to attract a rapidly growing number of North
destination potentially including two luxury hotels,
including such well-known names as EDSA Land
American vacationers, retirees, and second-home
an 18-hole Jack Nicklaus Signature golf course, deep-
Planners, Jack Nicklaus Design, Hill Glazier Studio
buyers. Under the advisement of RCLCO, a real
water marina, shops and restaurants, recreational
resort architects, ATM environmental consultants,
estate consulting firm, Hong Kong-based Applied
amenities, and a variety of residential product types
and others. Please consider this brochure your
Development Holdings Limited has acquired a
totaling 1,000 units.
introduction to Playa Grande; at the end, you will
stunning 1,223-acre (495-hectare) site with over
2
find a list of technical documents that you can
7,000 linear feet (2,100 meters) of unspoiled
The ownership is currently seeking a joint venture
beachfront in Panama’s Chiriquí province. The site
development partner to transform the Playa
is surrounded by pristine Pacific waters, replete
Grande vision into a reality, sharing equally in the
Playa Grande
request from RCLCO for additional information.
The Guanacaste,
Costa Rica Model
The development trajectory of
Playa Grande is likely to follow
the example of the Guanacaste
province of Costa Rica. In late
2002, Delta Airlines began direct
international service from Atlanta
to the town of Liberia in northwest
Costa Rica. This improvement in
access catalyzed a development
boom that has attracted some of
the world’s leading luxury hotel
flags including the Four Seasons
and Melia Sol, as well as highend second-home development.
The St. Regis and Rosewood
Costa Carmel developments will
soon join Peninsula Papagayo
and Reserva Conchal in drawing
the attention of up-market
homebuyers and visitors.
4
Playa Grande
Panama: The Next Resort Frontier of the Americas
In much the same fashion as neighboring Costa Rica,
Visitors feel safe in Panama because of its low crime
standards, yet the cost of health care services is a
Panama is emerging now as a prime destination for
rate and entrenched constitutional democracy with
fraction of comparable costs in the U.S. Finally,
North American and European tourists including
minimal political risk. The country’s robust title laws
Panama continues to enjoy a unique relationship with
those seeking second homes or retirement
grant foreign investors and property owners the same
the U.S. characterized by a deep commitment to the
alternatives. International tourism has more than
rights as Panamanian citizens. The American dollar
preservation of its security situation and the rule of
doubled since 1994 to over 700,000 visits per year,
is legal tender; the Panamanian Balboa is tied to
law, resulting from the Canal’s strategic importance
increasing 15 percent between 2005 and 2006.
the U.S. dollar at a one-to-one exchange rate, which
and the scale and international significance of its
Panama City is just 2.5 hours by plane from Miami
provides further stability to the national economy.
banking system.
and already receives more than 400 international
The country’s economy has been growing at a strong
flights each week.
and sustained rate in recent years, driven primarily
In summary, Panama is a phenomenally beautiful and
by expansion of the Panama Canal and increased
diverse country with infrastructure that rivals many
tourism.
developed nations. Its unique beauty and potential
Affluent North and South Americans are flocking
to Panama not only for its easy access but also for its
have begun to attract international recognition,
natural beauty that includes such diverse and pristine
Another attractive draw for international tourism
showing that Panama is in fact the next resort frontier
ecosystems as tropical rain forest, virgin beaches, and
is that Panama offers a modern healthcare system
of the Americas.
volcano high-altitude mountain environments, which
with American-trained, English-speaking doctors
rival any destination in Central America.
and several top hospitals and clinics that meet U.S.
A Joint Venture Opportunity
5
High-End Development Is Blossoming in Panama
The first wave of high-end resorts and second home communities have been developed in recent years with several more being planned. Here are some of the most
important and relevant projects:
6
Red Frog Beach Club
Kingfisher Bay Marina & Golf Resort
Isla Viveros
Located in the Caribbean island chain, Bocas del
Kingfisher is a planned residential development
Also located in the Islas Perlas, Isla Viveros is another
Toro, Red Frog Beach Club is an exclusive second
located on the southeast corner of Isla del Rey, the
planned residential development. The project
home development on the remote Bastimentos
largest island in the Islas del Archipelago las Perlas,
began selling beach front lots in January 2007 priced
Island, developed by Pillar Panama. In the 2.5 years
an island chain located 25 minutes from Panama
between $370,000 - $850,000. The project will
of sales, they have already sold more than 300 units
City by plane. The community encompasses 3,700
include a private landing strip, a full-service marina,
(a mixture of condominiums, villas, townhomes, and
acres including close to 10 miles of coastline. Phase
a Jack Nicklaus Signature Golf Course, a full-service
SFD lots) at between $200 and $500 per square foot.
1 of the project will include 35 beach cottages and
spa, and several hotels.
Amenities include pools, spa, nature trails, tennis
100 Marina Village condos. The development will
courts, two restaurants with bars, canopy and zip-
include a Marina Village with retail and restaurants, a
line tours, and a marina with restaurant and shops.
100 slip marina, and a PGA rated golf course.
Playa Grande
Red Frog Beach in Bocas del Toro, Panama
Playa Grande’s Accessibility
Access to Playa Grande is being
improved every day. By the
end of 2007, Copa Airlines will
begin weekly direct flights from
the U.S. to the Enrique Malek
International Airport in David,
Chiriquí with significant increasing
in service expected. The airport
is undergoing modernization and
expansion to handle the increased
traffic. Work also is underway
on a $2.4 million roadway
improvement to connect the PanAmerican Highway with the towns
of Horoncito and Boca Chica
in Chiriquí. When completed in
March 2008, travel time between
Playa Grande and the airport will
be reduced to just 45 minutes.
8
Playa Grande
Playa Grande: In a Class By Itself
Situated in Chiriquí province, Playa Grande is just
totaling over 7,000 linear feet (2,100 meters), along
While remote and pristine future development will
70 miles from the Costa Rican border and 40 miles
with an ideal site for a deepwater marina. The marina
have access to a local workforce living or relocating
from David, the country’s second most populous
site opens onto the Gulf of Chiriquí, already well
to the quaint local village of Horconcitos and Boca
city. By the end of 2007, international service will
known as a boutique destination for deep sea fishing
Chica, as well as the resources of David.
begin at the nearby David airport (see sidebar)
opportunities.
with weekly direct flights from Miami. The airport’s
To provide the complete Panama experience, a hot-
expansion will bring Playa Grande within easy
Moving inland, the topography yields three high
springs property is now being acquired in an area 40
reach of the U.S. and Canada. The site is reached
ridges with spectacular ocean views yielding the
minutes away from Playa Grande.
by the well serviced Pan-American Highway and a
potential for a large scale residential component
connector road, which leads directly to the site and is
with the majority of land connected visually to the
Applied Development and RCLCO toured all of
currently being paved.
island studded Pacific. Extensive tropical vegetation
the available large development sites on the Pacific
abounds, as well as extensive water resources. A
and Caribbean coast of Panama, and Playa Grande
Jutting into the Pacific Ocean in the western Panama
preliminary golf course routing has also been
is by far the most beautiful and has the greatest
province of Chiriquí, the 1,223-acre (495-hectare)
determined to amenitize the site’s valleys and back
development potential.
Playa Grande property has four natural beaches
country.
A Joint Venture Opportunity
9
Preliminary Project Plans
RCLCO has completed a preliminary project
accommodations at the signature branded resort.
development plan recommending a variety of
10
developable, RCLCO and EDSA analyses suggest
the site can support close to 1,000 residential lots
hospitality concepts, amenities, and residential
Homebuyers will find a wide variety of choices in
product types. Further outside validation of the
Playa Grande. Four types of lots are envisioned:
development opportunity has been provided by
beachfront, ocean view, golf estate lots, and large
RCLCO and Norton Consulting research suggests
Norton Consulting.
interior lots. Lot sizes will range from a third of an
that a majority of buyers for real estate at Playa
acre for beachfront lots to 20 acres for the largest
Grande will emanate from the United States
To serve tourists and vacationers, Playa Grande is
interior lots. Full ownership housing products
and Canada, with a smaller percentage of local
being master-planned for up to three different hotel
will include villas condos, bungalows, and hotel
Panamanians, European and Central & South
concepts, a large five-star luxury branded hotel with
residences, some with ocean views and some
American buyers. The site will most likely attract a
over 100 keys, a smaller branded 50-key boutique
adjoining the golf course. Fractional offerings are
mixture of both second home and retirement buyers
hotel, and a marina inn with about 30 rooms.
also being programmed, with a goal of offering
seeking easy access to the property and a luxurious,
Prices are anticipated to range from moderate to
a wide array of price points and use patterns.
highly-amenitized development.
upscale at the small marina inn to luxury five-star
Because close to 90% of the land at Playa Grande is
Playa Grande
and units.
Preliminary Conceptual Master Plan
Mayan Palace in Cancun, Mexico by Nicklaus Design
Planned Amenities and Recreational Opportunities
One of Playa Grande’s major attractions will be
well-developed marinas outside of the Canal Zone.
In addition to the planned amenities, Playa Grande is
the 18-hole Jack Nicklaus Signature golf course,
The region already has a strong following among
well located to take advantage of nearby recreational
currently under design. Jack Nicklaus’ team believes
sport fishing enthusiasts.
activities. A nearby hot springs property is being
that Playa Grande has the potential to host one of the
acquired and will serve as a unique getaway for hotel
most exhilarating golf experiences in the Americas,
Other planned amenities include: a golf clubhouse,
guests and residents alike. The Gulf of Chiriquí is a
and that the course will help the resort rival anything
luxury spas associated with the hotels, fitness center,
world-renowned fishing destination that will attract
in Costa Rica.
marina village and town center, resort beach club,
buyers and guests to Playa Grande. The site is also
resident beach club, resort pool, resident pool, water
proximate to Isla Coiba, a UN World Heritage Site
Another exciting amenity will be the full-service
sports center, children’s activity center, community
composed of several pristine and ecologically diverse
deep-water marina, now being planned by premier
concierge, business center, hiking trails, and
islands, often referred to as the Galapagos of Central
marina developer ATM. This will be one of the first
restaurants offering both fine and casual dining.
America.
A Joint Venture Opportunity
13
Entitlements
The entitlement process for Playa Grande’s
development is well underway. While Panama’s
favorable title and property ownership laws are
a significant incentive to development, finding
a large parcel with clean title is quite rare. For
example, Playa Grande had to be assembled from
17 individual owners. The environmental review
process is currently underway with an expectation of
achieving Level 2 permitting status within the next
12 months.
Pending entitlement and selection of a joint venture
partner, groundbreaking could occur as early as late
2008. The project is expected to be built out over 10
to 12 years.
14
Playa Grande
Development Team
Applied Development has assembled a stellar team
Norton Consulting: Norton Consulting principals
course in Panama to Playa Grande. He has designed
of experienced international residential, hotel, and
have been conducting resort and leisure community
36 of the world’s top 100 golf courses, with over 206
resort designers, architects, planners, and consultants.
consulting assignments since 1978. They have
solo course designs.
experience with a broad base of clients in the United
Applied Development Holdings Limited: Established
States, as well as around the world with extensive
ATM: Applied Technology and Management,
in 1975 and headquartered in Hong Kong, ADHL
experience in Mexico, the Caribbean and Central
designer of the Playa Grande marina, is a leading
has successfully transformed itself from an electronics
America.
waterfront design team with over 300 projects to date.
Its expertise includes environmental engineering,
OEM manufacturer to a luxury tropical resort
developer, and is one of Asia’s fastest growing
EDSA: This internationally renowned master planner
waterfront design, coastal engineering, environmental
companies. ADHL is currently spearheading the
of resorts and residential communities has over four
sciences, and water resources.
development of a major resort development in the
decades of experience and has won more than 200
British Virgin Islands.
awards. EDSA has master-planned over 60 Caribbean
Hill Glazier: Hill Glazier specializes in the design of
projects including the Four Seasons Nevis, the San
hotels and resorts, golf coubhouses, and spas. Among
RCLCO: Founded by Robert Charles Lesser in 1967,
Juan Ritz Carlton and El Conquistador in Puerto
its 200 worldwide projects are the Four Seasons
RCLCO is the leading knowledge solutions provider
Rico, and Atlantis in the Bahamas.
Hualalai in Hawaii, the Ritz Carlton in California’s
Half Moon Bay, and the One and Only Ocean Club
to the real estate industry. The company provides
market and financial analyses to a broad spectrum of
Nicklaus Design: Jack Nicklaus, recently named “the
public and private clients around the world.
most powerful person in golf,” will bring his first golf
on Paradise Island in the Bahamas.
A Joint Venture Opportunity
17
List of Additional Reports
If this brochure has piqued your interest, please contact RCLCO for further information. We would be happy to provide you with any or all of the following more
detailed reports and technical documents:
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•
Conceptual Master Plan. EDSA, Land Planners.
•
Boating Market Assessment and Marina Design Recommendations, Playa Grande. ATM, Costal and Marine Engineers.
•
Golf Course Master Plan. Jack Nicklaus Design, Golf Course Designers.
•
Strategic Market Analysis for the Playa Grande Property. RCLCO, Real Estate Advisors.
•
Financial Analysis and IRR Study. RCLCO, Real Estate Advisors.
•
Preliminary Market and Gross Economic Analysis. Norton Consulting, Inc, Real Estate Advisors.
•
Preliminary Resort Renderings and Site Plan. Hill Glazier Studio, Resort Architects.
•
Environmental Zoning Study, Playa Grande. Provided by Ingemar Panama, Environmental Advisors.
•
Soil Study, Playa Grande. Laboratorios Contecon-Urbar, Engineering Consultants.
•
Draft Scoping Report for Shoreline Improvements & the Construction of a Marina at Playa Grande. Ocean Caraibes, Engineering Consultants.
Playa Grande
JV Structure
Contact Information
For more information, please contact:
Proposed Joint Venture Structure:
Mr. Adam Ducker, Senior Principal
RCLCO
7200 Wisconsin Avenue
Applied Development’s joint venture partner will
Seventh Floor
be the lead developer responsible for day-to-day
Bethesda, Maryland, USA 20814
execution of the project. Applied Development will
venture the land, currently owned in full, and remain
in the deal as a full partner. More specific details
on the proposed structure will be supplied upon
request.
20
Playa Grande
Phone: (240) 396-2340
Email: [email protected]
Real Estate Advisors
7200 Wisconsin Avenue, 7th Floor
Bethesda, MD 20814
(240) 396-2340