Cerro Azul
Cerro Azul means “blue hill” and is well known as the closest mountainous area to Panama City. Cerro Azul is located within 30 minutes by car from Panama City and 15 minutes from Tocumen International Airport. Because of its altitude of 600 to 1,000 meters above sea level the climate in Cerro Azul is more pleasant than in Panama City. The area has a mixed tropical forest, nice rivers with water falls and the south side has a spectacular view over Panama City, the Pacific and the entrance of the Panama Canal.
On the principal road from the airport to Cerro Azul is a modern shopping center with everything from fast food shops, to supermarkets, to video stores and building supply outlets. Cerro Azul is the ideal destination for retirees that want to life in a beautiful green environment and still enjoy the proximity of a big city.
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Land prices in the area
Cerro Azul is an area of Panama that is virtually undiscovered except by locals who frequent the various spas and restaurants. Besides a few residential real estate projects there is still little development in the area. The Panamanians used to seek there mountainous weekend get away in the hills of El Valle. Although foreigners look at Cerro Azul from a new perspective the prices of large undeveloped properties are still low and vary between US$ 2.50 and US$ 6.00 per m2 (or US$ 25,000 and US$ 60,000 per hectare).
The regional developments
Foreign retirees from Europe and the US (baby boomers) like to live in green areas with a nice climate, but still close to a big city with all facilities and services. Cerro Azul matches all these criteria and we expect that within one year new real estate projects will be iniated in the area and the land prices will go up to another level.
We expect that within three years the properties with a sophisticated infrastructure and a nice view over a valley, the Pacific or Panama City will go up to at least US$ 30.00 per m2 (or US$ 300.000 per hectare). Which is still very low compared to the land prices of similar areas in Europe and the US.
The property
CrownLand is in the process of acquiring a 335 hectares titled property with incredible views over the Panama City and the Pacific Ocean. The property is already very well accessible and is currently a combination of forest and cattle land. It has a diversity of wild life, beautiful small rivers and natural springs.
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Added value
After the acquisition CrownLand will start adding value to the property by getting all the necessary building permits, making several project plans for a residential and tourism development and build the basic infrastructure (roads, electricity, water supply and a model home).
Investment proposition
The acquisition price of this property is US$ 3.75 per m2 which ends up to a total acquisition price of US$ 12.6 mln. Within four years we will sell the property in 10 smaller plots with an expected sales price of US$ 35 per m2. Including the costs of the added value and our profit share this ends up in 48% yearly revenue for our investors on IR basis. Investors can participate in a share participation as from US$ 200.000.
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