Investment in real estate portfolio

Investors participate in Panama real estate portfolio.
In July 2017 “FRAPAN-Invest” and “arsago Real Estate” from Frankfurt have entered into a partnership for real estate investments in Panama (Link). We combine decades of real estate management experience with local market access and network in Panama. Now investors are investing in a diversified and profitable real estate portfolio.

In December 2017, we began to build up a diversified and profitable real estate portfolio in Panama, in which investors as limited partners participate. This portfolio enables investors to achieve steady and attractive rental returns in USD.

The planned allocation of the real estate portfolio in Panama is as follows:

Portfolio Allocation

We are currently buying in Panama’s prime locations, where employees of multinational corporations such as Nestle, Adidas, the United Nations (and another 250 multinational corporations in Panama) are looking for rentals. Our investments so far have focused on modern apartments in the skyline in the front row of the Pacific Ocean and on apartments in the unique UNESCO Old Town. The gross rental yields to be achieved in USD are around 7%.

Enclosed photos of a purchased UNESCO-Altstadt-Apartment (Link) and a purchased modern apartment (Link) to get an impression of our investments.

And this is the view of another apartment that we are about to buy:

Skyline Panama City

When selecting apartments, we pay attention not only to finding reliable and long-term tenants, but also to the value of the properties and their locations. We are currently buying modern apartments in the first row on the Pacific Ocean for about 2,500 USD per square meter. At the current exchange rate this is approximately 2,000 euros per square meter. Such prices in comparable locations will be difficult to find in other parts of the world. Against this backdrop, we will continue to focus on achieving lucrative price increases in the future when selecting properties for sale.

The demand for apartments is currently increasing in Panama City. This applies to both buyers and tenants. On the one hand, this is due to the low purchasing costs compared with other countries and the weak USD. For example, many Canadian investors are currently using the strong CAD vs. USD for their purchases and want to buy before the arrival of Chinese investors (who will soon receive their tourist visa). In addition, there are major infrastructure projects (2nd airport terminal, new cruise port, new metro line, new canal bridge, new event centre), which means that many new employees are looking for rented accommodation.

 


FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. He offers advice on all aspects of living in Panama.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

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