Kissing your cash away with a smile!

New year resolution? How about kissing your cash away and being happy about it?

Yesterday I had a great conversation with a surfer and his wife (who is also a real estate broker and investor) on why they travelled to Panama and where looking into buying a property in Casco Viejo.

They are from California and had visited Panama a long time ago. Now, they´ve seen the dramatic change the country has made since year 2000 when the Panama Canal reverted to Panamanian hands.  The country became a regional hub through COPA one of the best airlines in Central America and its ports system.

In the last year, they´ve felt inflation coming and have made a commitment to run away from cash before it vanishes.  Where to invest it seemed the million dollar question, literally.  Being real estate brokers,  their inclination was to go for hard assets that could resist heavy storms.  In order to be “weather proof” or at least less vulnerable, the hard asset would have to gather some special characteristics: be unique,  exist in limited numbers, have great location, have a protected environment, have enough stuff happening around it that would lift its value.

And therefore, Casco Viejo came to their minds.

As Panama´s historic city, Casco Viejo (called also Casco Antiguo) had everything they where looking for: a UNESCO World Heritage site since 1998, it is forever protected from overdevelopment, not only by law but by an active community. There are only 700 buildings in the historic area,  each one with a special characteristic, a different architectural style that ranges from Spanish Colonial to French and Art Deco.

But also,  Casco Antiguo isn´t a dead museum type city. Only in the last year, twenty new businesses, between restaurants and offices had opened.  Casco´s only hotel  (The Canal House Panama) has already gained mentions in The New York Times and Conde Nast, between others. This was the place where Daniel Craig stayed while filming his James Bond movie  The Quantum of Solace. But its hospitality business is about to grow, as there are currently five hotels under construction.

With the Panama Canal expansion going full steam ahead and historic Casco Viejo gaining momentum, my surfer friends felt a wave coming and where ready to make a move.  They where ready to kiss their cash away and welcome 2010 with a smile.

Historic Renovations Casco Viejo: Before and After

For the past ten years, Casco Antiguo has gone through a delicate process of revitalization which includes as many angles as a city can afford: urbanism, community, historical architecture protection, legal and so many more.

As it moves forward, it is very difficult to convey how much it has changed without an image bank that would be the witness of the recovery.

Looking through my archives, I found this image of Hotel Colombia from  1999,  now one of the most priced buildings and condos in Casco Antiguo.  Located at Plaza Bolivar, the building was one of the first restorations in the area.

Today, Hotel Colombia has parking and a beautiful roof terrace with a pool and a panoramic view that includes the bay of Panama and the modern city.  Several restaurants have opened on its groundfloor: Casablanca and Ciao Pescao. Soon a sushi corner will open its doors.

The same process that happened to Plaza Bolivar back in 2000 is happening now at Plaza Herrera where at least two hotels are being built, and businesses have started to sprout.

Several high end projects are starting to deliver in the area, the largest one being Benedetti Hermanos, one of the few historic restorations in the entire district that has pool, underground parking, elevator, central air and central gas.

The government is also investing heavily in the area. This year, they´ve started to enhance the access area and combine it with green areas and parking.

The Economist briefs about Panama

If you ask anyone in Panama, they´ll tell you that the country is so much more than the Canal. And in fact, it is.  The Panama Canal represents a big income, some say about 20% of the country´s GDP.  But so is their banking center,growing tourism featuring upcoming unique sites like their colonial town of Casco Viejo and National Parks, and other industries that make for a balanced economy.

This month The Economist has dedicated an article to the Panama Canal and the impact of its expansion throughout this time of crisis. It is worth reading for anyone looking to invest in Panama or know more about it.

Find the article HERE.

Medicare Coverage in Panama

As hard as the MediCare  issue within the United States might be, it could be that offering off shore medical care could help balance the high coverage costs.  Currently, the government of Panama has been re doubling their efforts into getting their commercial trade agreement signed with the United States, including the extension of the medical benefit.

Countries like Panama, where finding  US graduated doctors  is common, costs for operations are significantly less and where hospitals like John Hopkins backing up a high quality level, offer the best platform to extend the coverage.

Panama, is only 5 hours away from New York and less than 4 hours away from Miami.  According to Yanahir Diaz,  from the John Hopkins Medicine International there are several medical insurance plans that are already accepted in Panama such as Tricare, Vanbreda and Cigna.

 

Venezuelan Investment in Casco Viejo, Panama

This year, Casco Antiguo - Panama´s colonial quarter – has seen the opening of at least 15 new businesses. Not bad for a town of only 3 avenues and 15 streets. Out of those 15 (maybe 20 at this point) at least 5 are Venezuelan owned and operated.

Most of them food related, they are exploring actively to open new niches and inject their energy into the eclectic historic area.  Businesses range from informal cafés such as Tomato (soups, salads, wraps and breakfast) and Aromas Café, to Mexican food (Tequila´s Restaurant). Neighborhood hang outs like Mayal´s at 8th street and fusion cuisine at 9th street.

Other investors are looking into development opportunities and investment opportunities.  Their preference: to own commercial space either to rent or operate themselves. They view Casco Viejo as one of the areas that has the biggest potential in Panama City due to its historic and tourism character.  Regard it as something unique and authentic.

However, it is also a neighborhood in transition where  things take time and active involvement in community programs  is part of business life.  Not too long ago, AVACA, the neighborhood association organized a beach cleanup with the community. Venezuelan restaurants, along with Italians, Panamanians, Americans, Brazilian, Colombian and many other nationalities helped raise funds for the event.  It was an enthusiastic day, enjoyed by all participants.

If nothing else, Casco Viejo seems to be the heart of what mixed neighborhood is all about, and is part of its attraction.  Not only old patina blends with restored buildings, and architectural styles are interesting, but nationalities and businesses are joined by a vision of building a quality brand called Casco Viejo.  Throughout its history, Panama has been the crossroad of the Americas, joining oceans and continents. And since 1673, Casco Viejo has welcomed every nationality to make a living.

With the right language and cultural backgrounds, Venezuelans seem to be set up for success.

Heineken combines Amsterdam with Panama

In a recent post I was thinking on how easy it was to move between Amsterdam and Panama with the direct flights of KLM.  Well, it seems I was not the only one thinking about it!. Heineken Regional Services America, a subsidiary of Heineken International which bases out of Amsterdam has just moved operations to Panama, being one of the main reasons the easy connectivity with the region and Europe.

Plus, we have tropical weather and we like their beer very much!

Favorable winds for Panamanian Economy

El Economista, the Latin American version of The Economist had a lot to say about Panama.  It had important articles about the region, as usually, but specially for Panama it had good news about investments in the country.  Chevron is investing $12 millions in Panama raising their storage capabilities near the ports at the Caribbean Coast. It also had a count of the current number of financial institutions operating in Panama: 92.  19 local banks, and the rest international brands.  The 3 top banks being: Banco General (8,006.5 million dollars), HSBC Bank Panama ($6,400.8) and Banco Nacional ($5,695.50).   During the first trimester they had a growth of 8.8%, which even if less than the incredible 11.9% they had last february it is still good taking in consideration all the repercusions of the world wide financial crisis.

The other big news is the Canal Expansion, which has been given the “green light” now that the works have been appointed.  This year, the Panama Canal will blow it´s 95th candle and the Expansion is budgeted (who really knows!) will at $5,250 million dollars. The group who will be handling the Expansion is headed by the Spanish company Sacyr Vallehermoso S.A. and includes companies from Italy (Impreglio S.p.a.), Belgium (Jan de Nul) and Panama (CUSA).  The work will start at the ends of 2009 and are supposed to finish in 2014.

On another note, the new President have taken concrete steps to expedite the construction of a new transportation system (basically, a metro). He created a Secretary just to work on this and the construction, which will be financed by Brazil (thanks Lula!) will cost $1,100 million dollars. I personally really, really appreciate that this issue is being taken with seriousness. Transportation are the veins of a country, and if they are clogged, it becomes a huge obstacle in the economic performance of a country.

Can´t Save Yourself From Love

This has been an intense week for international piano star Danilo Perez and his wife and music therapist Patricia Perez. Fundación Danilo Perez has not only launched the next Panama Jazz Festival 2010, but also announced their program Music For Change… and received an award from the Smithsonian Institute in Washington for all the work he´s been doing in Panama with children.  He was also appointed artistic director at the Global Institute of Jazz of Berklee College of Music in Boston, USA. Danilo and Patricia are all about positive energy.

Their passion is simple and deep: to raise the level of music education in Panama and transform through it the lives of children at social risk. The jazz festival is only a platform to achieve this goal, but what a platform! Last year, close to 20,000 people enjoyed the festival. About 650 students went to the clinics, scholarships where given, for a week, Panama was turned into a Cultural Hub.

For Danilo, Panama is the perfect spot to nurture jazz. With an almost caleidoscopic culture….  SEE FULL STORY HERE

Professional Golf at Casco Viejo, Panama

With participants from at least seven different countries (USA, Italy, Germany, Norway, Poland, Netherlands, Panama, England and others), last Sunday, Casco Viejo inagurated its first professional golf competition.

Brand new professional equipment and first class catering,  the carefully prepared landscape complied with the most strict international standars.  Followed by a red carpet water view party, it was the clear reflection of the luxurious lifestyle Casco Viejo offers to its priviledge habitants.

See HERE : More lifestyle news… Surf, skating, beisball and other sports in Casco Viejo.

Presidential Elections at Casco Viejo, Panama

In many countries, Presidential elections tend to be crazy. Here, it is the most boring day of the year (well… ever since we got our democracy back in 1989).  The fun part is the days before it.  This year, it fell coincidentally on a long weekend, as May 1st was Friday… but because of the elections, sales and consumption of alcohol was going to be restricted for both Saturday and Sunday. So every street in Casco Viejo had something going on Friday.

It was also the first true winter weekend, a lot of rain poured, so thousands and thousands of bugs, crazy size ants (queens and males finally coming out of the ground to mate and die the next morning) made their annual appearance, announcing the change of the season. Birds went nuts feeding on them, we even saw a big hawk standing at one of the balconies choosing its next meal, Casco Viejo “other neighbors” where feeling the call of nature. It was fascinating, like being in a jungle!

Well, not too far away, political party flags where hung on balconies, people woke up really early on Sunday dressed either with their best dresses or with political TShirts.  I thought this also ressembled nature´s dance, as often birds and other animals change color to attract their mates. Like bees, everone went to the schools to vote. Unlike other countries, everyone in Panama votes.  Election day is always a Sunday, and the political parties usually help with transportation.  Especially in the interior of the country, transportation is arranged. On election sunday, every bus, taxi, canue and mule is hired to get people to vote. This year, they made it possible for Panamanians abroad to vote and also for people in jail.   Last elections 76% of Panamanians with right to vote, voted.  Not sure what the number is for this year, but probably will be more.

The process is so easy and fluent, people tend to be really nice and take their task seriously. I was glad to see so many people from the neighborhood taking their role with total devotion.

Our elections are not done electronically.  Privacy during the elections is considered sacred, and our only weapon in times of need. We won´t even use electronic devices for our Lottery.  That too falls into the sacred category, by the way.  Usually they give you four papers in order to vote for each category, and they are counted manually.  The judges, with witnesses from every party, count at the end and they write down the results in an Acta. Then, in front of everyone, they burn the papers at the school patios. So there is no re count possibilites.  “Back in the days” (meaning in the Noriega times and even before) here was where the action happened. The votes where “stolen” …. literally. In order to protect the votes, the boxes with the papers inside where carried outside the school into people´s homes to protect it, as it was a normal cheating strategy to count “incorrectly” and put whatever number at the Acta.  Even though times have changed, the seriousness in the faces of those who have the responsibility of guarding our votes tell me there must be a memory of those times somewhere ingrained in their brains.

In Panama, you only have a chance to vote until 4 p.m.  Results are known around 6 p.m. but they confirm it no later than 7 p.m. Definately you know who won before 8 p.m.

This year, and for the first time after the invasion, a candidate won for over 50%.  Ricardo Martinelly won with a very big 60% product of his tenacity (he has run in two different campaigns now), his marketing (his slogan “Los Locos somos Más” was a bit unorthodox, but catchy) and the political alliance he was able to put together with the other oposition parties. But I feel most people, after the scandals of corruption and missmanagement of the current government, just aligned themselves against it, and Martinelli was the candidate that had the most chance of winning. Therefore, Balbina Herrera, the candidate for the government party (PRD) lost with a 37%.

So, what should be expected from Martinelli? If anything, Martinelli´s campaign has shown a creative team, capable of thinking outside the box and being able to work with competitors for a goal. If Ricardo Martinelli keeps these qualities during his government, then we should be on a good track. Buy only time will tell.