Hirsch Bedner Associates (HBA) wins Trump Ocean Club contract

HBA/Hirsch Bedner Associates (HBA) - the hospitality interior design firm - has been appointed to design the hotel components of the US$400m (£267.6m, 316.9m euro) Trump Ocean Club in Panama City, Panama. The US-based company was selected from 10 others to design the 369 guestrooms and public spaces at the Trump Ocean Club, which is being developed by the real estate developer K-Group.Betsy Hughes will serve as project manager and will be in charge of five Atlanta-based designers, as well as one in Panama.
“We are very excited about this project and the fantastic team behind it,” she said. “Together with the architects and the hotel operator, Trump Organisation, we are very collaborative group that understands the vision and ultimate goals for this project.
“This will also be the first time that HBA has worked on a project in Latin America and we are very proud to enter the market with the Trump brand.
“The Trump Ocean Club will feature condominiums and condo-hotel units, a wellness spa, an infinity pool and deck, a private island beach club, a hotel sky lobby, gourmet dining, shops and a 32,000sq ft (2,970sq m) casino.

Trump Ocean Club, Key project milestones reached

Newland International Properties Corp., or Trump Ocean Club (“TOCLUB”), released second quarter results in line with the company’s budget, and passed some key milestones. Uncertainty in the market over TOCLUB’s ability to meet the 1.25x Collateralization Ratio (required under its 9.5% Senior Secured Notes due 2014), appears to have been addressed, with management stating on its conference call that the ratio had been reached in August 2008. Additionally, market concern over the collection rate of deposits has somewhat reduced due to comments from the company that its month-of-May collection rate improved to 99% as of the second quarter of 2008 press release, from 80% as of the first quarter press release. This month, Newland International Properties Corp. and Trump International Hotels Management LLC also signed the Hotel Management Agreement for the hotel at the Trump Ocean Club International, solidifying its relationship with Trump.

Despite worsening conditions in the global real estate market, TOCLUB’s sales and receivables as of July 31, 2008 reached US$356.1 million and $271.5 million, respectively. The company also announced price increases of 5-10% in all of its products (despite already capturing a significant premium relative to other projects in Panama) and a new marketing plan for products with higher inventory levels, such as two bedroom residential units. To date, TOCLUB has sold nearly 79% of the project’s units two years before the expected completion in August 2010.

Two key measures of TOCLUB’s work progress considerably improved in the second quarter of 2008; the Schedule Performance Indicator (SPI) and the Cost Performance Indicator (CPI). The SPI, which measures the amount of work completed relative to the original forecast, improved to 102% in second quarter, from 90% in the first quarter. Although still in excess of the budget, the CPI, which calculates the budget relative to actual work costs, improved to 95% in second quarter, from 90% in the first quarter. This improvement illustrates the company’s efforts to secure its future steel needs amid increasing global steel prices.

Liquidity remains strong, with cash and cash equivalents totaling US$197.9 million, mostly comprised of US$172 million in the Construction Escrow Account (CEA) and US$10.5 million in the Debt Service Reserve Account. The company will continue to draw down on the CEA as construction accelerates from its current work on the thirteenth floor (of sixty-six total).

JP Morgan Announces "Trump Ocean Club, Key Project milestones reached"

Panama, the Next Hotspot

Panama's shopping forecast.

Panama’s image and fortunes are bound to the canal that slices through it, a 80km feat of partly French, largely US engineering linking the Atlantic and Pacific, lucratively facilitating 5% of the world’s trade. For 75 years, the canal and a 15km buffer zone were administered by the US as recompense for their efforts. Since regaining control in 1999, this southernmost Central American republic, with a population of 3.3 million, has undergone an energetic transformation. Panama Canal, once at risk of being bypassed by the new generation of super-sized container ships, is undergoing a €4.6bn expansion, and the confidence inspired by the project has been a catalyst for development across all key sectors. 


After announcing the expansion in 2006, GDP growth rose to 11.2%, outstripping China, and making Panama not only the fastest-growing Latin American economy, but, according to the IMF, one of the fastest-growing in the world. Now that growth has proven to be sustainable, Panama is firmly on the radar of European investors.


Expansion, allowing for double the current capacity, is expected to bring in an additional €10bn or so in direct revenue during the first 11 years following completion in 2014. “It’s estimated that even during construction the canal project is adding an additional 1% to GDP annually, benefitting a wide range of areas,” adds Judith Gold of IMF.


It’s also a boost to related industries – multimodal logistics, exports, free zones (the Colón Free Zone is already the second largest in the world) and ports (Hong Kong’s Hutchison Whampoa intends Balboa to be the largest in Latin America by 2010), and two new passenger terminals have been opened to accommodate a vast and growing luxury cruise and mega-yacht industry. 


Panama City, home to the largest concentration of international banks in Latin America, continues to grow in importance as a financial hub. “The financial centre has quickly responded to new opportunities.” says Carl-Fredrik Nordström of the Autoridad de Turismo Panamá. “Currently the Panamanian banking sector has US$14bn [€11.2bn] in market liquidity and has attracted significant new investment.” This trend will continue if the planned integrated Central American Stock Exchange resolves regulatory issues and begins operating next year.


The stock exchange idea is modelled on the integrated Scandinavian model and has been funded by the Inter-American Development Bank. Designed to increase trading volume and lure foreign investors and companies, it will offer a single trading platform for Panama, Costa Rica and El Salvador, according to the chairman of Panama’s stock exchange Ricardo Arango.


Political and fiscal stability and the mood of confidence has triggered a construction frenzy, mainly luxury tower blocks in and along the coast around the capital catering to an upwardly mobile local market as well as an influx of North American buyers. Hotel development is rampant after steady growth of 12.5% a year in tourism shot up to 30% in 2007, the biggest spike in visitor numbers in the Western hemisphere. And it’s not over. The World Travel and Tourism Council predicts revenue from tourism will double by 2018, hence the need for a further 8,000 rooms, 1,800 of which will be added in 2009–10. 


“Panama is emerging as one of the world’s hottest destinations for the jet-set crowd,” says Gary Sims of Nikki Beach Hotels, which has two projects underway. Marriott, Radisson, Hard Rock and Le Méridien have invested, as has Donald Trump, whose 65-storey Trump Ocean Club opens in 2010. Prices are high and competition fierce for investment opportunities in Casco Viejo, the Havana-like colonial quarter of Panama City recently featured in the latest Bond instalment, Quantum of Solace, and undergoing extensive restoration. 


The appeal of easily-accessible Panama to the US market is obvious. But, say analysts, an influx of tourism and foreign investment from Europe, Spain, Russia, and Turkey has fuelled this year’s growth. 


“Our global advertising and public relations campaign has helped spur on this growth” says Nordström. “This campaign, with increased effort towards the European market, was initiated last January, and looked to present Panama to Europeans really for the first time.”


European investors are now behind some of the top projects. The UK’s London & Regional Properties sealed one of the biggest development deals ever, acquiring the 1,112ha Howard Air Force Base with a plan to transform it into a €8bn business district the size of the City of London complete with retail and hotel facilities and 20,000 homes. 


“The current economic crisis may slow down the pace of growth but long-term projections remain highly positive,” adds Nordström. 


With controlled inflation, control of a vital shipping route and a service-based economy, Panama looks set to be largely immune to the vicissitudes of the global economy. Says IMF’s Gold: “It’s hard to forecast in the current climate, but the Economic Intelligence Unit predicts GDP growth of 9%–10% for Panama next year. So far, Panama hasn’t had the banking crises other countries have had; so far, so good."

PUBLIC TO TRUMP OCEAN CLUB: “YOU’RE HIRED!!!”

Ground-Breaking Development Offers Unprecedented Avant-Garde Lifestyle in Latin America; Surpasses All Sales Goals
PUNTA PACIFICA, PANAMA – (November 2007) - The illustrious Trump Ocean Club
International Hotel and Tower in Panama City marks Donald Trump’s first foray into Latin America, real estate. Today, the commanding building is one of the first in the area to begin construction! Entering the market in full “Trump style”, this exclusive luxury community offers first-class amenities, revolutionary architecture, and lavishly designed residences and suites.
Trump Ocean Club, surely to be recognized as an architectural masterpiece, is located on Punta Pacifica, Panama City. The $400 million dollar project is the largest real estate investment in Latin America with 2.8 million total sq ft. and 68 stories. For the first time in Panama, residents and visitors alike will benefit from a luxurious lifestyle that combines the elegance, comfort and indulgences found in the most exclusive six star hotels.
The state of the art building offers the latest and the finest in technology and architecture and is being developed by Roger Khafif of K-GROUP DEVELOPERS Latin America.
The Trump Ocean Club community is being created as a deliberate “haven”; a place one can settle into and never leave. The master plan includes: condominiums and condohotel units, a magnificent wellness spa, an oversized infinity pool & deck, Yacht Club & Pier, a private beach club on Contadora Island, gourmet restaurants, upscale boutiques and shops, exclusive office lofts, an elite hotel sky lobby, a state-of-the-art business center, concierge service, valet parking, and bellmen. The hotel also provides the comfort and convenience of on onsite barber shop, beauty salon, drug store, flower shop, jewelry store, a plethora of gourmet dining experiences, valet, chauffeur and limo service, spa services at residences, and 24 hour medical service. Those who like to get away from home, but refuse to slow down can also take pleasure in the electrifying on-site 45,000 square foot Trump International Casino.
Completing the “package of perfection” offered at Trump Ocean Club, each and every residence has been carefully engineered to offer unobstructed views of the Pacific Ocean from private terraces. The 1, 2, 3 bedroom units and penthouse suites are designed with premium European cabinetry and elegantly detailed designer fixtures, imported granite countertops, modern stainless steel appliances, imported marble flooring, and contemporary frameless showers.
In addition to an abundance of ultra exclusive amenities is Trump Ocean Club’s convenient and central location; just ten minutes from International Banking center,
fifteen minutes from International Tocumen Airport, three minutes from world class shopping and nightlife, and two minutes from the new Punta Pacifica Hospital affiliated with John Hopkins Medicine International. The property is also just a short two and a half hour flight from Miami and five and half from New York City.

Donald Trump discovered Panama during his celebrated Miss Universe Pageant. He was so affected by the beauty of the country; he remembered it years later when looking into new projects.

When a Panama City possibility arose, Trump jumped at the opportunity stating, “I am excited to bring the prestige of the Trump Organization to this exceptional destination project. We expect Trump Ocean Club, Panama, to reach the success and renowned status of my other luxury projects, including the Palm Trump International Hotel and Tower in Dubai, Trump International Hotel & Tower, Chicago and Trump Tower, among others.”

Panama is experiencing a boom never before seen in Latin America. Reasons for this growth are numerous. Topping the list is Panama’s easy financing and use of the U.S. dollar, making it one of the top destinations to retire or invest. Additionally, the
Panamanian government is 100% behind the country’s growth, as they are exonerating property taxes on residential investments, resulting in hundreds of thousands of dollars in savings to future property owners. Undoubtedly the country’s decision to spend $5.2 billion on increasing the width of the Panama Canal, the country’s biggest source of revenue, is a sure sign of Panama’s growth and prosperity. Due to the excitement, beauty, and tax benefits, Panama has recently been ranked the #1 place to retire by Modern Maturity magazine, a publication of the AARP.
While Panama’s development numbers are widely known, Trump Ocean Club is proud to be the first of its size to actually begin construction; interested buyers can rest assured – this project is moving full steam ahead! The opportunity to live in a beautiful waterfront property in an exciting and growing city at a superior lifestyle, all at prices unseen anywhere else in the world has not gone unnoticed. While Trump Ocean Club is in close proximity to the history of Panama such as the Panama Canal and Casco Viejo, the project is quite obviously defining the future of this exceptional city, country, and region!

For more information please visit www.trumpoceanclub.com and for sales inquiries please contact 1-877-89-TRUMP (87867) or jacks@trumpoceanclub.com.

Trump Ocean Club: Fact Sheet

What is The Trump Ocean Club:

Located in the Punta Pacific peninsula, it is a mixed-use resort that
allows you the opportunity to live, work, and play all under one roof.

This great tourist, residential and hotel complex of more than 2.6

million sq. ft, (252,000m2) will be built in the strategic and most
exclusive area of Punta Pacifica, in Panama City where it is
destined to become a world class landmark.
The 68 story building includes:
• Condo Residences
• Hotel Condominium

• Wellness Spa
• Pool Deck consisting of 6 pools, one being an infinity pool

Trump Ocean Club

• Boutiques & Shoppes
• Gourmet Dining
• Beach Club
• Yacht Club & Pier
• Business Center
• Trump International Casino
• Trump Ocean Club Privileges.
-Advantages of having a unit in Panama
Unprecedented appreciation rates in vacation and retirement
home markets in the US have led many Americans to look abroad
for more affordable alternatives. Prices in the traditional south of the border
retreats like Mexico, Costa Rica and the Caribbean
have escalated to the point where they rival those along America’s

own beachfronts. According to the National Association of
Realtors, second home purchases in the US accounted for more
than one third of annual sales in 2005. And the trend is expected to
continue as the first wave of 79 million US boomers is turning 60 this
year.
Americans are looking for the Next Great Destination… it is quite
clear why Panama is quickly becoming the indisputable answer:
Real estate prices are still affordable but are appreciating quickly.
In an effort to continue attracting Americans, the government is
offering 5-10 year tax exemptions on new construction projects.
Panama City is a booming metropolis with world class projects like
our Trump Ocean Club and Tower, mountainous landscapes, and
beautiful Caribbean coastlines - the stuff of travel-magazine cover
photos. Direct flights are available from Los Angeles, New York City,

Houston, Dallas, Miami, and more to come with direct flights even in
the works from the UK and Spain.
• How to own property in Panama? Is it fully titled?
You will hold full title to your property with a publicly recorded deed
of sale. It is just like a fee simple real estate purchase in the U.S. A
resale program will also go into effect when 85% of the building has
been sold. This will allow you to offer your unit for sale before closing
if you so choose.
• Mode of Financing
The $US dollar is the local currency thus allowing Panama to be the
only country in Latin America that offers a 30 year mortgage with
rates in the 6-7 % range. Clients can apply for mortgages with
HSBC, Citibank, Scotiabank, or thru any international or local bank
with presence in Panama.
• Can I buy using a Panama corporation?

Yes, buyers can use a Panamanian corporation or a Private Interest
Foundation provided by the Trump Organization.
The advantages of using a Panamanian corporation or Private
Interest Foundation (PIF) are:
-Privacy in your investment

-Tax planning
-Corporations and Private Interest Foundations guarantee your
asset protection in case of lawsuits or other types of legal claims
against the owner of the property.
-Property under PIF are unable to be seized or be frozen by local or
international court orders.
-It can be used as a living will for your assets to be directed toward
the beneficiaries stated on the PIF articled of incorporation.
Is there a Property Tax Exemption on this property?
Yes.

All units will be granted a 20 year Property Tax Exemption.
• Can I rent my condo residence? Will there be onsite help for
this?
Condos will be available for mid to long term rental through the
onsite Trump Ocean Club rental office.
• How will the Hotel Suites be rented?
The condo hotel units will automatically go into the hotel program
and be rented out on a nightly basis. The Trump property will be the
most luxurious.