Panama World Telport
Descripción del Proyecto
Project
The Panama World Teleport is a mixed-use development with approximately ninety two thousand square meters (92,000 m^2) of total space. The plan for this endeavor calls for high end Class A office space, a five-star Sonesta branded hotel, retail space, and abundant parking all located in the heart of the financial district on a four thousand two hundred and ninety two square meter (4,292 m^2) lot on the exclusive Calle Aquilino de la Guardia. The project is being designed by the most renowned architects to create a structure that is not only of the highest quality, amenities, and functionality but is also another landmark building with contemporary design and aesthetic to line Aquilino de la Guardia.
Commercial
The commercial portion of the project will be a licensed Teleport Building being fitted with the most high-tech telecomunications. Planned is twenty thousand square meters (20,000 m^2) of rent able space as well as four thousand six hundred square meters (4,600 m^2) of common area. All of the top conveniences and amenities offered at the Panama World Teleport will make the business person’s day less demanding. High-speed elevators, security, dining options, high-speed internet and cable, WI-MAX, and more will insure that offices here stay occupied and in demand. Top corporations and institutions are expected to maintain offices at Panama World Teleport.
Offices are often sold as condos in Panama but our group have chosen to rent the commercial space, creating a revenue stream for the life of the building rather than cashing-in from the start. Every aspect of this building is designed to create a lasting asset that will hold its value years into the future. Currently our group is entertaining several offers from banks which are vying to have their name as the signature on the face of the building. Each of these institutions also have intent to rent five thousand square meters (5,000 m^2) or more to house a branch and/or offices. The overall profitability for the commercial area on cost to net income for the year is thirteen percent (15%) and will pay for itself in about seven and a half years.
Parking
A valuable amenity in a crowded city that is often overlooked in projects is the availability of additional parking spaces, such as will be included into the design here. One thousand two hundred (1,200) parking spaces are to be built on four thousand three hundred square meters (4,300 m^2). This is over six hundred more parking spots than is required by zoning and density laws that will be rented to tennants, yielding strong revenue stream yearly. Parking is expected to bring in over six hundred and seventy five thousand dollars ($675,000) in net income per year.
Hotel
The five-star Royal Sonesta Hotel brand will accompany the commercial aspect of the project The Royal Sonesta was chosen to maintain the high-end motif and to be a perfect accompaniment for the high-end business executives and personnel located in the commercial area. Two hundred rooms, totaling eight thousand square meters (8,000 m^2) and three thousand two hundred square meters (3,200 m^2) of common area will be available to accommodate business travelers and tourists alike. The hotel aspect of the project is a result of the extreme demand of the market in Panama City for more hotel rooms. Occupancy rates are at all time highs currently; often soaring up to one hundred percent (100%) occupied for the top ten hotels or more in the city.
The Royal Sonesta will be a dearly needed step up in luxury for Panama City. The Bristol and its fifty-six rooms are currently the only five-star quarters available in Panama City. The Royal Sonesta will help to fill the void for the upscale business traveler who desires five-star treatment. All of the amenities that one would expect in a five-star hotel will be offered such as pool, spa, fine dining, business center, and fitness center. GHL Hotels will handle the service of hotel operator. This will be the 7th Sonesta hotel that GHL operates through their strategic relationship with the brand. Sonesta and GHL are part of the project team from the initial stages of design all the way through construction to insure that all specifications and criteria of a Royal Sonesta are met. The management fees with Sonesta are totally incentive or performance based, as they are not effective until a twenty percent (20%) profit has been reached. This performance or incentive based compensation is an ideal structure for profitability as it insures quality service and guarantees that at least a significant profit is reached before any fees are taken.
In our projections we have chosen to use a 70% occupancy rate for the hotel rooms even though the actual is much higher. Even with this conservative occupancy assumption this department is projected to gain a profitability rate of thirteen percent (14%), with projected yields of over four million two hundred and fifty thousand dollars ($4,250,000).
Retail
Patrons of both the hospitality and commercial aspect of the project will find use in frequenting the first floor retail space totaling of two thousand five hundred square meters (2,500 m^2) of rent able space and five hundred square meters (500 m^2) of common area. Classy boutiques, café’s and shops will line the retail area. The stores will not only be an additional amenity that will create a great atmosphere but it will also add value to the project with projections indicating net income of over three hundred and forty thousand dollars ($340,000) yearly.
Overall Profitability
The complete financials and profitability of the project have been produced by taking into account the physical characteristics of the lot along with desired levels of profit and highest and best use of planned space. This model has been spearheaded and developed by the developing and financial expertise and experience of Guillermo Ronderos Torres. This project was designed for profit with each aspect thought out to be not only top-end but also most profitable according to space allotted.
Projections show that net revenues for all departments will generate over eleven million four hundred thousand dollars ($11,400,000) profit yearly. With a total project cost of about seventy seven million dollars ($77,000,000) the profitability is computed to be approximately 14% with the project paying for itself in little over seven (7) years. After debt service on a fifty million dollar ($50,000,000) loan at 8.5% over fifteen years the cash before taxes yearly is calculated to be almost five million five hundred thousand dollars ($5,500,000). After average amortization is factored in, the total return is adjusted to be just over eight million eight hundred thousand dollars ($8,800,000). Once the building is up and running as projected, the building will be projected to have a market value of approximately one hundred and twenty five million dollars ($125,000,000).