UK developer London & Regional is currently working on one of the largest master planned mixed-used developments in the world, Panama Pacifico, at the former United States Howard Air Force Base. The decommissioned US military facility was turned over to Panama’s government in 2000 when the United States officially ended their 90 year control of the territory. The base, strategically located at the mouth of the Panama Canal on the Pacific Ocean, is directly across the canal from Panama City. London & Regional was awarded the $750 million deal in 2007 by the government of Panama to create a mini-city they hope will rival other global cities as a “Singapore of the Americas”.
The Panama Pacifico project, with its preexisting infrastructure, and as one of the largest mixed-use developments in the world, will have many opportunities for real estate investors in the near future
The nearly 3,000 acre Howard Air Force base, recently used to shoot footage for the upcoming James Bond film “Quantum of Solace,” has been idle for over eight years, and will need considerable work on its infrastructure. The property, which at its peak housed 20,000 US servicemen, includes roads and crumbling concrete buildings that will need to be restored. The site already contains a working airport, sports facilities, a movie theater, and a call center operated by Dell Computers, which is one of the largest in the world. Panama hopes to attract other multinational corporations to the development, under the jurisdiction of the Panama-Pacifico Special Economic Area Agency, by offering extensive tax breaks and other incentives.
According to their website, London and Regional has begun implementing their 40 year development plan for Panama Pacifico, which aims to create a modern mixed-use city, including all of the expected amenities. The first stage of the project, which is slated to begin this year, is a 58 acre International Business Park that will offer industrial and commercial office space.
Unfortunately there are shortcomings to the plan. According to the Panama Investor Blog, the general manager of the project has only committed $60 million to the project over the next two years, which may cause the project to fall short of the lofty goals of the master plan. In addition to this, the scope of development would make it a perfect candidate for creating a large scale sustainable New Urbanist project, yet there is very little mention of environmental goals on the Panama Pacifico website. The site mentions the possibility of creating a major “big box” retail outlet near the Pan-American Highway, which would suggest that environmental concerns may not be a priority for the developers. Regardless of these shortcomings, the Panama Pacifico project, with its preexisting infrastructure, and as one of the largest mixed-use developments in the world, will have many opportunities for real estate investors in the near future.
Sources:
Panama-Pacifico Special Economic Area Agency
London & Regional Finally Begin Work On Howard AFB (Panama Investor Blog)
Panama Real Estate Investment 