Current status of the Coco Beach project

When buying real estate, one can not be careful enough. We understand this and therefore we are describing the exact status of the Coco Beach project below. Please remember the below facts:

1. Coco Beach is a project with in total 32 hectares of oceanfront and oceanview land at a pristine location in Chiriquí, Panama, close to the border with Costa Rica. The project has two phases, phase 1 has 81 fully developed building lots and areas for a planned hotel development and recreational areas, and phase 2 is still open terrain.The land of Coco Beach is fully titled and property of Pacific Lot SA and registered as such in the public land registry of Panama. Coco Beach is registered in Public Registry at the name of PACIFIC LOT, corporation duly incorporated under the laws of the Republic of Panama, entered at Listing number 652 247, Document 1524336  of the Commercial Section of the Public Registry of Panama, duly authorized according as reflected in the Minutes of the board of  Shareholders of the Company dated four ( 4) March two thousand eleven (2011) duly represented by MARVIN DANIEL ORTEGA MORALES, adult, Panamanian, with personal identity number XXXX (available upon request but omitted for privacy reasons), who is general manager of our company and is the one who signs purchase-sale agreements. This information you can verify on the internet at (you will have to create your account first).

2. The project site of Coco Beach is owned by the Panamanian legal entity Pacific Lot S.A. The shareholders of this legal entity are two Dutch investors. Pacific Lot S.A. has no debt except for loans provided by the two shareholders. There are no other external debts, and there is no money owed to banks. The infrastructure (roads, water, electricity) has been fully financed with owners funds.

3. The site is being developed by developer Panama which is a Panamanian entity under Dutch/USA/Panamanian management that acts as asset manager for Pacific Lot S.A. The CEO, Mr. Henri Kerkhof has dual nationality (American/Dutch). PanamaPortfolio has been active in Panama since 2006 as asset manager and actively manages investments, currently 16 real estate projects at various locations in Panama, for a group of 30 mostly Dutch investors. Among the investors are some of the richest families in The Netherlands. Current market value of the investments under management is approximately US $ 50 million. However, as stated before, Coco Beach is owned by Pacific Lot SA, which is owned by two Dutch investors, and managed by asset manager S.A.

4. Currently we offer 81 lots in total. Including reservations over 70% of the lots is currently either sold or reserved.

5. In 2019, 81 individual building lots have been registered in the public registry of Panama and buyers did or will receive the deeds to their property thereafter, these individual owners will be registered in the public land registry of Panama. The remaining building lots will receive individual property (finca) numbers and will be registered as well. Then they will be sold.

6. The Coco Beach project is the only large scale beachfront development in Chiriquí, Panama, which is currently on the market with risk-free lots “ready to build” and ongoing villa development. There is construction of villas at this moment at the project site. Risk-free means that the permitting has been completed, infrastructure has been installed and a buyer receives the land in its name and is registered as legal owner in the official registry of Panama. If the developer should not be able to meet its obligations, the homeowner or lot owner remains the legal owner and has full rights to his property.

7. In the last months over 1,5 million $ of real estate has been sold and more owners are deciding to build in 2020.

8. SA receives 10 to 15 new requests for villa offers per day.

9. Construction of two villas has started under supervision of the asset manager and is executed by the site manager.

Villa under construction at Coco Beach site

10. 80% of the buyers at Coco Beach are foreign nationals. The current split of buyers (these buyers will be your neighbours) is approximately 45% American, 20 % Canadian, 5% European, 10% other foreign nationals (f.i. India) and 20 % local. Most villas are bought by people planning their retirement or people buying a second home for holiday and investment purposes. The reason that the majority of buyers is foreign is explained by the fact that 85% of Panamanian buyers are looking for homes or apartments below 150000 $, and prices at Coco Beach start at 179000 $.

11. Land values in Chiriquí are still relatively very competatively priced ($ 50 per square yard for oceanview property ready to build including infrastructure and all permits), relative to > 200-400 $/square yard in Coronado and > 400-600 $/square yard in Panama City.
The project is located in an area which is rapidly developing, recently f.i. Del Monte closed a deal to invest 100 million $ in the area and David is rapidly growing. Already thousands of new jobs have been created. The area has enormous potential as economic growth is accelerating in Chiriquí, the government is heavily investing in infrastructure and it is close to a deep water port. Also, Chiriquí is a developing tourist destination, the province has beautiful mountains, beautiful beaches,, clear rivers and an abundance of nature including pristine mangrove forests.

12. Land values for prime oceanfront and oceanview land have doubled over the last 10 years in Panama.

13. Coco Beach will be developed as a sustainable, beachfront, gated community development, targeted primarily at (foreign) retirees as well as second home destination of Panamanian families with villas in the price range mostly below USD 200,000 (including building lot with an average size of 1390 m2). The villas will be designed in cooperation with top architect Mallol Arquitectos and are priced at approximately 1500 usd/square yard interior space. This is a very attractive proposition and offers excellent relative value to comparable projects. Use of solar renewable energy is mandatory for new villa buyers.

14. The project has approved zoning permits, building permits, an approved masterplan, and roads. Electrical and water infrastructure has been completed for Phase 1 (18 ha). 

15. The Coco Beach project is connected to the Puerto Armuelles highway by means of a dirt road. The current investors are still discussing with the authorities to replace this road with a tarred road. At the moment it can not be garanteed that this tarred entrance road will be in place soon.

16. The following planning is in place for the realization of the various amenities:

  1. The building of the entrance will be completed in 2020. 
    The construction of the beach club will be finished in 2020. The large pool, an important feature of the beach club and social area, will be completed in 2020. 
  2. The horse club is planned for start of construction.
  3. The hotel is planned.
  4. The boat club and other amenities will be completed by 2022.

17. The bridge providing access to the western side of the beach (specifically relating to the residence lots 1 to 24 on Coco Beach is scheduled to be build.

18. The design of the amenities has been visualized in the brochures that are available upon request. Detailed information such as construction plans, costs, tender documents) are available after signing a Non Disclosure Agreement.

19. There is a stream running along the front of the resort which is fairly dynamic and currently almost dry as the river which is supplying the water flow is currently somewhat more to the east of the project. This river is a natural river and can change position. The stream is dynamic and is sometimes dry and sometimes full of water, depending on the tides and the climate (heavy rainfalls or little rain). It also moves gradually with a maximum of roughly 3 meters to one side and then back to roughly max 3 meter to other side. This has been the case over the last 10 years.Our site manager, Mr. Gary Wilson, is actively monitoring the situation. There is in our view no danger that beachfront lots will be severely impacted by the river.

20. There is a beautiful palm beach at Coco Beach. Recently there has been some erosion at the eastern side of the beach where some palm trees have been uprooted by the sea. The erosion of the beach is dynamic as well, the sea “bites’ little bits of the beach and for example 2 months later returns them again. Experts have looked into this and have concluded it is not a threat to the beach. However we want to be sure and are monitoring and measuring it. In the past there were periods there was erosion on a specific area of the beach. Although Panamanian experts advised us to stand down and let nature goes it way, we consulted Dutch water management experts and with their advice we placed small barriers on that area of the beach just to be sure to limit the amount of erosion taking place. This turned out to be very effective. This is a method we will use again if we see the erosion will be too harsh and will affect the beach.

21. The physical characteristics of the properties soil have been investigated (tests have been done at lot 32 by experts) and the results indicated that the first 5 meters of soil have load bearing capacity for house building. This is a sufficient result, there is sufficient load bearing capacity for foundations of villas.

22. The depth of the underground water at Coco Beach was tested at lot 32 as well. The underground water level was found at ground level minus 2 meters. Recently in October (rainy season) another excavation was done at lot 48 to build a pool and the level of ground water was found at ground level minus 1.70 meters.

23. The current gravel roads at Coco Beach will receive a fresh top layer when construction at the project is finished

24. Once a buyer becomes the owner of a building lot he is obligated to build his villa within 4 years according to the regulations of the Home Owners Agreement. Building a villa normally takes 12 months if they are custom build. If the houses are part of a larger project building time should be quicker.

25. The fees of the Home Owners Association will start at 75 $ per month. The services received for this price are:
With the monthly $75 fee you are paying for the various personnel who
make sure the community stays in an excellent condition:
– Personnel to pick up your garbage and clean out the various garbage bins around the project
– Personnel for mowing the lawns and water the trees and plants in the various parks in the community
– Personnel for keeping all the roads and sidewalks clean from any dirt and/or garbage
– Personnel on the beach to keep the beach clean and manage the sun beds
– Personnel in the bar of the beach club
– Personnel for managing the towel service + sunbeds and keeping the pool clean within the beach club
– Personnel at the equestrian club to take care of the horses and have them ready to ride on the beach or in the area.
– Personnel in the Yacht club to manage your boat.
– Personnel that 24/7 guards the community
– Personnel to keep the sport areas clean and maintained
– Personnel for reparations of any equipment used within the community

26. The water for the Coco Beach resort will be supplied and tested by IDAAN, a national institution and is potable. Recently a test has been done to determine the water quality and it was found that the chlorine content was a little low. IDAAN will correct this situation. The water quality will be regularly tested by IDAAN. An industrial water meter is installed at the projects entrance. To service the green areas in the project water will be used, which will be billed to the owners, through the agreements within the Home Owners Agreement. Owners are allowed to water their lawns during dry season.

27. Electricity will be billed directly by the electricity provider

28. There is no fibre optic cable available at Coco Beach. There is a wireless connection. Fibre optics have no use because there are no fibre optics nearby to connect to the community. The current infrastructure at Coco Beach does provide for the future connections because there are “open tubes” already in place in the ground. The speed of the wireless internet access will be 25-30 mbit per household which is sufficent for video calling/streaming etc. This is currently the maximum we can receive in the Puerto Armuelles region. Once the networks are upgraded the speed will be upgraded at Coco Beach as well.

29. According to the HOA (Home Owners Agreement) you are allowed to build on 30% of your lot for living. Total construction of all building may not exceed 50% of the area. Deviations are possible but have to be agreed by the HOA architect committee.

30. The following “general” amenities are planned for the resort:
1. 24/7 security control at the main entrance gate, as well as patrols on the beach
and resort boundaries
2. Hotel and restaurant, the restaurant is available to home-owners
3. Equestrian centre
4. Boat storage and launch area
5. Convenience store on the property
6. Garbage disposal
7. Shuttle service to David
8. Road and infrastructure maintenance
9. Recycling facilities
10. Grocery delivery service and pickup point
11. Small shops and supply of daily groceries

31. House designs have to be approved by the architecture committee of the HOA. Our organisation can provide sketches for you at no additional cost by our design team.

32. In the unforeseen event that the Coco Beach resort becomes insolvent or if the investors feel it is no longer viable to operate, the home owners rights are specifically described in the HOA. Please note that the Coco Beach project has no bank loans and has wealthy investors backing the project. Also please note that 81 “ready-to-build” lots are registered in the public registry of Panama in 2019. The buyers of the “ready-to-build” land will be the owners and have the right to build. So independant of what happens to the current owners, the future owners will ensure the further development of the project. Again even in the event that the Coco Beach owners become insolvent, you remain owner of the land that you bought and the villa that you constructed. It could however happen in such an event that some of the amenities will not be constructed. To counter this risk we offer the possibility to add “money back garantees” to your contract which describe the obligations in case the planned amenities are not realized in time. These garantees will enable you to monitor the project and to get out as soon as certain amenities are not realized or are delayed. The owners are very much committed to the project and want it to succeed.


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