News Room
The Telegraph - February 7, 2007
Brothers win £5bn Panama City dealBrothers win £5bn Panama City
deal
Two of the UK's most secretive property investors have won an
auction to redevelop the former United States Howard Air Force Base
in Panama City in a $10bn (£5.1bn) project.
Ian and Richard Livingstone have secured the rights, through
their London & Regional Properties vehicle, to one of the
largest development deals ever recorded. The brothers fought off
competition from US-based property company Eastern Group in the
final round of bidding, with L&R's $750m bid winning the
day.
The famous former airbase, which overlooks the Panama Canal, was
brought to the market by a department of the government of Panama,
advised by the World Bank. The deal is due to be ratified by the
Panamanian government shortly and will complete next month.
L&R's development director Jason Mills has spent much of the
past two years working on the bid. The company has worked up a
phased 40-year master-plan for Howard to deliver a new city
district of some 60m sq m of development worth an estimated end
value of $10bn.
Mr Mills said: "This is a once-in-a-lifetime opportunity for one
company to plan and deliver an entire new city district."
L&R's plans include a range of homes, hotels, and leisure
resorts, as well as a large industrial zone, science park and
welfare projects - in effect, a whole new city. The company will
work with local partners and industrialists Jaime and Isaac
Gillinski. The deal marks a new phase for L&R, which until last
year focused on the European and Russian real estate markets.
L&R manages assets worth £7bn, including the Park Lane
Hilton and the Empire in Leicester Square. The reclusive brothers
are estimated to have a personal fortune in excess of £750m between
them.
James Quinn