Overseas property

Residential Buy-to-Let: Grandview Garden Residences
Embassy Club, Clayton, Panama City, Panama

Low rise, large, luxury 3 bed apartments with stunning views over the National Park
High returns from a development uniquely positioned to tap into fast growing expat demand
The first phase will complete between the middle and the end of 2009

Prices from £177,330 - reserve your own unit for only £3,250!

Project Highlights
• Unique low-rise residential community in Panama’s booming capital city
• Luxury fixtures and fittings with use of extensive range of lifestyle facilities
• Colonial-style architecture set in protected parkland 15 minutes from city centre
• Ideal location for target expat market, next to US Embassy, City of Knowledge & UN

Investment Strengths
• 12% annual return achievable: positive cash-flow with only 8 months occupancy
• Rapidly rising rental demand from expanding Clayton expat community
• High quality long-term tenants from local international organisations
• Excellent finance package from HSBC with low capital entry level requirements
• Stress-free investment with in-house management and maintenance service
• Well known, trusted developer with 30 years experience
• Up to 10 years real estate tax exemption, no income tax, and 50% capital gains tax reduction
• Resale options to developer or local expat market
• All partners already in place - you just have to tell us which units you want!

Panama City

A major centre for trade and finance
Panama City is the gateway to the world famous Panama Canal and home to one of the largest aviation hubs in the world. With its offshore status and stable political environment, Panama City is also a major   financial centre with more than 104 banks with a combined capitalisation of over $55bn. Panama City has become a hub for high-rise buildings and is now home to 8 of the 10 tallest skyscrapers in Latin America. The continuous influx of expats from all over the world gives the city a dynamic and cosmopolitan atmosphere.

Clayton, Panama City

A rapidly expanding expat community
Clayton is better known as a former US military base. Part of the site was reopened in 1999 as “The City of Knowledge” – an ever-expanding international centre for education, research and innovation, and now home to 40 businesses. This year will see the opening of the new US Embassy and Consulate in Clayton. The $5.5bn expansion of the Panama Canal is also due to commence soon which will create 40,000 new jobs, of which 30% will be taken by expats.

This growing community of mainly American expat workers on 2-3 year contracts will create a stable, long-term rental demand for upmarket residential property in Clayton. At present, there is very little high-end rental accommodation in Clayton and the protected status of the parkland that borders the district puts absolute limits on future development here, offsetting the risk of oversupply.

The Embassy Club, Clayton

Ideally positioned to tap into rising demand
The Embassy Club development is being built right next to the new US Embassy and Consulate offices and close to the City of Knowledge, the UN offices, the Panama Canal and several other international organisations. Hence, as a low-rise, lifestyle-focused, fully furnished, luxury development, Embassy Club is in an unrivalled position to cash in on the rising rental demand.

All major amenities are close by including several large shopping malls, schools (including an English speaking American University), post offices and hospitals. Clayton is also home to a large National Park, an equestrian centre and Summit Golf Club. The city centre is about a 15 minute drive and key transport links such as the Corredor Norte Highway and the airport are also close by.

Set on a gentle slope, Embassy Club will offer its residents several spectacular views. To the south, they will be able to look down into the bay and see the boats entering the famous Panama Canal from the Pacific Ocean; to the east, there will be the glittering lights of the buzzing city centre; and to the north and west there will be the lush surroundings of the beautiful metropolitan park.

A complete lifestyle package
Embassy Club will create the perfect lifestyle for expat families living in Clayton. As a resident you will belong to a private club and enjoy full use of the facilities of The Lifestyle Centre. The one-off  membership fee ($20,000) is included in the sale price of residences and new owners will be allocated a proportionate ownership share of association club which owns and runs the $2,000,000 Lifestyle Centre.

The Lifestyle Centre’s services and facilities will include:
• A putting green
• A fitness centre
• Tennis courts
• A swimming pool
• A health centre (including massage service, sauna and steam room)
• A games room (bingo, darts, pool, etc.)
• Business centre
• An equestrian centre
• A residential concierge program

The Lifestyle Centre will organise an extensive programme of social events providing residents with great opportunities to meet the neighbours and create new friendships. Social events will include concerts, dancing, barbeques, pasta nights and bingo.

Just 10 minutes drive from the Embassy Club will be the Summit Golf Resort - the only golf course in Latin America with a computerized GPS Pro Shot System.

Embassy Club will be perfect for nature lovers too. All residents will need to do is grab a pair of binoculars and enter the Metropolitan National Park next door to witness the staggering range of plants and animals that Panama is home to. For adventures further afield, the concierge can organise daytrip excursions for hiking, fishing, water activities and other ideas that residents fancy trying out.

Ideal for expat family living
Through intelligent design, Embassy Club will create a tranquil, homely environment. The buildings will be elegant, employing Spanish colonial-style architecture and distinctive interior design. The homes will be spacious and set in beautiful, lush, landscaped surroundings.

Units at the Embassy Club are selling very fast and E-Quity believes that the Grandview Garden Residences will prove highly successful at attracting long-term expat family tenants.

Grandview Garden Residences

Luxury living with stunning parkland views
Embassy Club’s Grandview Garden Residences will be low-rise 2 and 3-storey buildings offering large luxury apartments aimed at expat families. These garden apartments will benefit from an elevated position within the Embassy Club site giving residents spectacular views out over the Metropolitan and
National parks which they can enjoy from their own extensive balcony or patio area.
 

Generous unit sizes starting at 225 square metres will lend each home a spacious, airy feel. Premium interior design features will include chrome finished fixtures, granite countertops, large walk-in closets in the Master Bedroom, with imported ceramic tile floors throughout. Some of the ground floor units will include an exclusive backyard so families can really embrace the distinctive, natural setting. The third level of residences will be two penthouses.

Grandview Garden Residences
3 bedrooms with walk-in closet in master bedroom, 3 ensuite bathrooms, guest toilet, family room, huge
kitchen, laundry room leading to maid’s quarters, 2 parking spaces

Price: from $350,720   Size: from 225.85 sqm   Plot: 137.71 sqm Reservation: $6,500

HOA (monthly service charge): $315.00

Construction timeline
Construction will commence in August 2007 and the whole development will take 4 years to be completed. Grandview Garden Residences are due to complete between the middle and the end of 2009.

Why invest in this project?

A cash-flow positive investment
The Embassy Club will fill a gap in Panama City’s residential rental market by providing a complete lifestyle package for expat executives and their families. Demand will outstrip supply, since Clayton offers only low-rise low-density units and the international organisations in the area will be employing thousands of staff. Advertising for the development will target the American Embassy and Consulate, the City of Knowledge and the other international organisations in the area.

The rental company will source high quality longterm tenants and manage the property on your behalf.
Management fees are yet to be finalised but expected monthly costs will be no more than 20% of rents received; monthly rental income is forecast at 1% of the sales price for a full month’s occupancy.

Non-nationals can obtain mortgage finance in Panama with up to 70% of the property price. With a gross rental income of 12% for 100% occupancy, you can afford to have your property vacant for upto 4 months a year and still have a self-liquidating investment.

Example purchase

Unit cost $ 350,720
Deposit $ 105,216
Registration tax $ 876.80
Legal $ 1,500
Finance $ 350.72
Total $ 107,943.52

Gross rent $ 42,086.40
Management costs $ 8,417.28
Finance repayment $ 19,432.92
Gross rental return $ 14,236.20

HAO $3,780
Legal $750
Net Profit $9,706.20

The above example assumes the purchase of one of the Grandview Garden Residences through HSBC finance, conveyance services of E-Quity.com partner solicitor in Panama City and incorporation of an offshore company.

Tax benefits through offshore status
Investors should consider purchasing through an offshore company or incorporating the property into a trust. Besides privacy of capital, these solutions offer both tax exemptions and massive reductions in transaction costs. Setting up a company to purchase property in Panama is a straightforward preprocess and can be organised in as little as 5 hours by one of our partner law firms specialising in this field. A popular alternative for retirees is to incorporate their Panama property into a trust to avoid succession tax.

Property tax exemptions
As a new-build, Grandview Residences units will be exempt from real estate tax for 10 years. Annual land tax will be 2.1% and after the 10 year exemption period expires, real estate tax will also be levied at the same rate.

Strong re-sale demand
An extra boost to investor confidence is that the developer is reserving the right of first refusal on any re-sales. The value would have to be fair and in line with market conditions.

How do I buy?

Payment schedule
The 30% deposit can be paid in 2 different ways:

1.  5 instalments of 6% over a period of up to 240 days from reservation
2.  10% down upon signing of the Sale & Purchase Agreement and then pay the remaining 20% over the first 3 months of construction

In both cases the investor will need to supply a Promissory Payment Note from his or her bank within 90 days of signing of the Purchase and Sales contract. This letter will confirm that the investor either has had mortgage finance approved in principle or has sufficient funds in his or her current account to make a cash purchase.

Reservation procedure
1. Contact STR Property Ltd to register your firm interest in buying
2. STR Property Ltd checks the availability of the units
3. The number of units requested by you is reserved on your behalf by STR Property Ltd & E-Quity.com
4. You transfer the reservation fee to Currency UK, who will transfer on to the developer.
5. You have a mortgage approved in principle by HSBC (if finance is required)
6. You sign a life insurance contract if you are taking out a mortgage for the purchase (compulsory with HSBC)
7. [Optional] You contact one of the Panamanian solicitors listed above to agree your purchasing strategy and to potentially open an offshore company or trust to this end
8. You appoint a bi-lingual solicitor to organise the title searches and draft the sales contract (which will be in Spanish)
9. You supply E-Quity.com with a letter of irrevocable payment from your bank or lender confirming necessary funds are available to make the purchase within 90 days of reservation (in line with the reservation option you have chosen)
10. You pay the 30% deposit
11. Once the units are ready for occupation, your bank (if finance is being used) or the developer (if you are buying in cash) will draft the Public Deed
12. Once you have paid for all the buying costs, both parties will sign the Public Deed in the presence of a public notary
13. The deed is then sent to be registered at the Public Registry
14. Once the Deed has been registered, your bank will transfer the 70% balance of the purchase price to the developer