Panama Pacifico Development

THE OLD HOWARD IS NOW A NEW CITY!

PANAMA CITY
PANAMA CANAL
TOWN CENTER
KOBBE HILLS
AIRPORT
PACIFIC OCEAN

THE VISION

A world-class commercial and business hub, capitalizing on its strategic location.
A new economic center, attracting multinational companies and creating jobs for Panamanians.
A sustainable community with housing available for a wide economic group.
High-quality shopping, offices and entertainment in a new downtown area – The Town Center.
A distinguished tourism and leisure attraction with resorts, a championship golf course, and country club.

…All set within the ecologically inspired landscape of hills, forest, mangrove and wetlands.
CLEAN
GREEN
NEW

A FORMER AIR FORCE BASE
Operated as Howard U.S. Air Force Base until 1999
Returned to Panama as part of the Carter-Torrijos Treaty at the end of 1999
Law 41 of 2004 formed the Special Economic Zone
Government hired the World Bank to perform a 2 ½ year search for a Master Developer
LRP was awarded the bid in April 2007
Master plan was submitted in Sept. 2007; Approved in Dec. 2007
Project team began work in January 2008

MASTER DEVELOPER

London & Regional Panama is a joint-venture between Jaime Gilinski and UK-based London & Regional Properties.
Leading Latin American-based entrepreneur and investor Jaime Gilinski has interests from banking and insurance to real estate and other fields.
London & Regional Properties is among the most active European private investors with over $20 billion in assets located across three continents.
Backed by a team of world-class consultants
London & Regional Panama has committed to invest a minimum of $705 million
$405 million by 2015
$100 million under construction

DEVELOPMENT OBJECTIVES
• 1,400 total hectares;
~850 developable hectares
• ~1.0 million square meters of new commercial floor space
• ~20,000 new homes and apartments
• ~40,000 new jobs
• Extensive parks, open space and community amenities
• Retail centers
• Luxury and business hotels

WHY PANAMA?

A unique geographic location
Economic and political stability
A pro-business government
Established strategic and trading history
The strategic advantage of the Panama Canal
The most active and efficient ports in Latin America

WHY PANAMA?

Special economic status and other fiscal incentives
The strength of the global commerce in Panama
5% of the world´s commerce traverses the Panama Canal annually
The railway land bridge between ports in the Atlantic and the Pacific Oceans moves >500,000 containers per year
Panama is a central logistics point for Latin America
An international center of 87 banks with assets of >$80 billion
A tropical climate, free of natural disasters

WHY PANAMA?
Panama GDP Growth Rate

GDP growth rate (2008): 9.2%
Unemployment (Aug/08): 5.6%
Literacy rate (2006): 97.3%
Fitch credit rating (2007): BBB
Average minimum salary per month (2007): $312
Average salary per month (2006): $500 estimated.

Source: Business Panama • www.contraloria.gob.pa

THE IDEAL LOCATION
FOR BUSINESS

BEST CONNECTIVITY IN LATIN AMERICA

PANAMA PACIFICO
1,400 HECTARES

A SPECIAL ECONOMIC AREA

Objectives
An Economic Engine for new direct Foreign Investment into Panama
Site Characteristics
Large, integrated site
Mixed-use community
Policy Features
Very low or no taxes
Simplified procedures
Flexible zoning, land use

Transport & Logistics
Industrial Park
High Tech Manufacturing
MROs and Aviation
Residential
Tourism
Information & Communications
Technology

A SPECIAL ECONOMIC AREA
850 hectares of developable land subdivided into seven zones or character areas:

Airport
Logistics Park
Town Center
Technology Campus
Farfán
Forest Business Park
KobbeHills

ADVANTAGES OF THE SPECIAL ECONOMIC AREA
One Stop Shop
Special Labor Incentives
Simplified Immigration Benefits
MAIN BENEFITS
OF LAW 41 OF 2004
Legal Incentives
Tax Incentives
Training Center

ONE STOP SHOP

Onsite government agency (AAEEPP) deals with all necessary procedures for companies moving onsite.
Thisincludesallpermitsneededforbusinessprocesses.
11 Government offices are represented in this Agency – saving your company time and money!

SPECIAL LABOR INCENTIVES

Fixed overtime rates (25%) and work on employees’ day off (50%)
Flexibility to assign employees’ day off
Companies may remain open on weekends and holidays
Foreign worker: possibility of exceeding Labor Code’s percentage rule
Higher Education Training Center
New justified cause for termination for market losses and/or fluctuations
Ministry of Labor onsite at Panama Pacifico

SIMPLIFIED IMMIGRATION BENEFITS
Onsite government handles all Visa and work permit procedures
Special investor and worker Visas are available
Visa benefits extend to worker’s immediate relatives
Tax-free, one-time importation of any personal and domestic belongings (up to US $100,000)

LEGAL INCENTIVES

AllLaw 41 incentives are permanentforonsitecompanies
Law 41 issupplementedbyPanama’s Investment StabilityLaw
Onsitecompanies are automaticallycovered
Guarantees no businessimpactfromgovernmentchangesfor ten yearsafterregistering a companyhere, including:
Company tax structure
Companybenefits
10 year period beginsthedate the company is registeredonsite

NATIONAL TAXES

All companies registered in the area will be exempt from indirect taxes
Direct taxes are paid by all companies except those established by Tax Law 41 of 2004 as “Specific Business Activities”
Income
Dividend/Complimentary
Transfer/Withholding

FOLLOWING ACTIVITIES ARE TAX-FREE
Transfer of Services to the
Aviation Industry
Back Office Operations
Multimodal and Logistics Services
Stock Transfer Between
Area Companies
Call Centers
Transfer of Goods and Services
- Between area companies
- To the agency
- To Master Developer
- To other petroleum free zones
- To the Panamian ports
- To ships and their passengers
High Tech Product Manufacturing
Offshore Services
Data Transmission
MROs for Aviation

A PROJECT HAPPENING NOW

Ourinvestment in 2009
$26M in infrastructure
$40M in International Business Park
$20M in PanAmericaCorporate Center
$16M in Town Center

Over $100 million investment
this year!

ONSITE COMPANIES

3M
3PL Panamericana
Aggreko PLC
Albacrome
Cabo Drilling Corp.
CBRE
CODICO/CoTrans
Gianfranco Agency
Magen David Academy
MEC Group
Osala
Radio Holland
Universidad del Caribe
Wilhelmsen
Term sheets signed: 18

THE SITE DIFFERS FROM THE CITY
View of the existing site lookingnortheast
Green…..
View of the existing site looking west
MountainViews…

With the Sierra Miñon Mountains as a backdrop,
Panama Pacifico isgreen, beautiful place tolive and work

PHASE 1 CONSTRUCTION

International Business Park
PanAmerica Corporate Center
Town Center

INTERNATIONAL BUSINESS PARK
FIRST 2 OFFICE BUILDINGS
2 FLEX BUILDINGS

Prominent access off BrujaBoulevard
Adjacent to the new Town Center
Easy Access to the Pan-American Highway

and downtown Panama City

Approximately 26 hectares
14 Class-A office buildings with more than 80,000 m2
2 Flex buildings totaling 20,000 m2
Construction has begun
Surrounded by primary rainforest and incorporating extensive green spaces

INTERNATIONAL BUSINESS PARK
International Business Park aerial view

UNDER CONSTRUCTION NOW!
TWO NEW OFFICE BUILDINGS
TWO NEW
MULTI-TENANT FLEX BUILDINGS

OFFICE BUILDINGS

Under construction, ready for occupancy in December 2009
Built to international standards
Three and four stories
Building A: four 1,200 m2floors
Building B: three 1,800 m2 floors
Highly divisible and flexible
3 m ceiling heights
Extensive glass line – double pane glass
Parking › 3 per 100 m of office
Covered executive parking
Green park areas
Forest views

CLASS-A OFFICES UNDERWAY
Office buildings and parking area

INITIAL FLEX BUILDINGS

Construction is underway; ready for occupancy in August 2009
Two buildings
Constructed to international standards
Building one ~ 12,395 m2, 9 m clear height
Building two ~ 8,786 m2, 7.3 m clear height
Highly divisible and flexible
Individual office entries
Ample truck docks and drive-in doors
37.5 m concrete truck courts

FLEX-WAREHOUSES STEEL ERECTION

New Flex-Warehouse Buildings at the IBP

Western SERVICE Road
Western Service Road behindthe new IBP

PARKING AT THE IBP
Paving of thefront parking lot by theFlex-Warehousebuildings

IBP - HYDROSEEDING
Treatmentforerosion control.

INFRASTRUCTURE NOW UNDER CONSTRUCTION
2009: $26M in infrastructure

Access to PanAmerica Corporate Center
Western Perimeter Rd.
Upgrades to Bruja Blvd.
Extensive road network
Underground electricity
Water lines
Telecommunications
Sewage System

UNDER CONSTRUCTION!
Central Connector Road between Bruja Blvd
and the new Western Perimeter Road

CENTRAL CONNECTOR ROAD
DrainagesysteminstallationalongCentral Connector Road

WESTERN PERIMETER ROAD
Road base and paving work continues

Usage of geotextile

Pavingoperationscontinueonthe new roadtothe PCC

PLANNED TRANSPORTATION

Public and private bus services
LRP Transportation Demand Program
Walk-able streets will relieve vehicle traffic
Onsite airport for private and charter executive travel
Pedestrian friendly streets with sidewalks, street trees, and lighting.
Residences and offices will be a five minute walk to parks.
Shuttle, bicycle, jogging, and pedestrian loops connect the neighborhoods.

ACCESSIBLE WORKFORCE

PANAMERICA CORPORATE CENTER

~ 88 Hectares
Entitled for more than 370,000 m2 of warehousing and manufacturing facilities
Facilities from 2,000 to 50,000 m2
Construction has begun!
Flexible site and building design
State-of-the-art warehouse and corporate architecture
Ample truck maneuvering areas on each site
Single and multi-user buildings available
Existing power, telecommunications and other utilities

Leveling the land and erosion control

New drainagesystemsalongwiththe new roadwork

StreetBasecoat -- PCC

50
PCC SOUTH SITE UNDER CONSTRUCTION
Spec #2
Spec #3
3PL
Spec #4

THE HEART OF THE CITY: TOWN CENTER
An easy walk from your office
Dining and shopping
Convenient for youremployees

THE TOWN CENTER
Central Park

THE TOWN CENTER
Lots of greenareas and plazas

THE TOWN CENTER
Central Park view to the South

CENTRO DE CIUDAD - TOWN CENTER
Phase 1

~ 150 Single Family Homes
~ 72 Apartments above Retail
Construction starting this year

THE TOWN CENTER – Phase 1a: SITE PLAN
Mixed-Use + Hotel
Single Family +
Townhouses

TOWN CENTER:
MIXED-USE – APARTMENTS ABOVE RETAIL

FIRST PHASE:
MIXED-USE - TOWNHOMES

ADJACENT TO THE POOL AND CINEMA
FutureMixed-Use
Cinema and Pool
Plaza
Future Hotel
Greenway

TOWN CENTER: RESIDENTIAL AREA – PHASE 1
View of new single-familyneighborhoodstreetscape

TOWN CENTER: RESIDENTIAL AREA – PHASE 1
Conceptual design of single-family residences and duplex

PUBLIC SPACE NETWORK
Fingerparks
Greenways

KOBBE HILLS
Privileged living in balance with nature…

KOBBE HILLS
An exclusive area with high-end hotels, a championship golf course
and luxury homes.

KOBBE HILLS
Gorgeous greens…

KOBBE HILLS
Luxury homes…

KOBBE HILLS
Elegant condominiums…

KOBBE HILLS
For those with discriminating taste…

KOBBE HILLS
Exclusive residences…

KOBBE HILLS
An exciting club house…

SIMILAR IN SIZE TO ALL OF COSTA DEL ESTE

IMMEDIATE BUSINESS ADVANTAGES

Onsite airfield for cargo and executive travel
All utilities available now
electricity
water
wastewater
telecommunications
high-speed internet
Special Economic Zone with substantial tax breaks and business incentives
Excellent global business location
Easy access to Panama City and the Panama Canal

Flexible spaces for your business to grow!

THE OLD HOWARD IS BECOMING A NEW CITY!

New homes and apartments for all income levels
New offices and commercial space
New schools for all ages
Championship golf course
Exciting shopping and dining experiences
Numerous parks
Extensive trails for walking and biking
Public and private transportation

MAKE THE RIGHT MOVE FOR YOUR BUSINESS
London & Regional Panama

+(507) 316-3500

 info@panama-pacifico.com
www.PanamaPacifico.com
Building 723
AndrewsBlvd. & Stauffer Ave.
Former Howard Air Force Base

COPYRIGHT
This presentation and the information included within it is the exclusive property of London & Regional (Panama), S.A. and is a protected work under copyright laws. Any act of reproduction, modification, distribution and/or public communication, without the prior written consent of London & Regional (Panama), S.A., is subject to the civil, criminal and administrative actions contemplated by Law.