Trump project in Panama downgraded

The Fitch assessment provides a glimpse into the way the financial community is reevaluating even well performing developments in the wake of the credit crunch.

Friday, January 9, 2009

Fitch Ratings downgraded $220 million of debt on the Trump Ocean Club project in Panama City, warning price declines “could lead to higher than expected default rates for existing buyers.”
To date, prices in the Trump project, where low-end units typically cost around $500,000 (€370,000), have remained “stable,” Fitch notes in its report on Newland International Properties, the developer. However, between August and October of 2008 the project “experienced a significant decrease in project absorption rates.”

More on this topic

Trump Ocean Club's Ratings Downgraded

March 2011

Fitch Downgrades Newland Int'l Prop, Corp.'S S220mm SR Secured Notes; Remains On Negative Watch

Fitch Ratings-Chicago-18 February 2011: Fitch Ratings has downgraded Newland International Properties, Corp.'s $220 million senior secured notes to 'Bsf' from 'B+sf'. The transaction remains on Rating Watch Negative due to continuing concerns over further delivery delays as well as to monitor buyers' willingness and ability to close on units upon delivery. Newland International Properties, Corp. (Newland) is developing Ihe Trump Ocean Club International Hotel & Tower (TOC). a multi-use lower located on the Punta Pacifica Peninsula in Panama City, Panama.

Trump Ocean Club's Reasons for Being in Panama

August 2010

Growth and economic stability, legal security, fiscal incentives, liberal immigration policies, the 2006-2008 real estate boom and the fact that hurricanes avoid it.

Six months after the first completed units were handed over to their new owners, the creation of the project that gave life to Trump Ocean Club and its sail-shaped tower is the subject of an interview by AméricaEconomí with the Panamanian developer, Roger Khafif, president of K-Group and Trump's partner in the project.

35% of the Trump Ocean Club Already Built

April 2009

Its promoters claim that the decline in the pace of sales is not too much and that they have already sold 80% of the 1,010-unit project.

Its opening is planned for August 2010. To date, some 90 thousand square meters have been constructed, 35% of the 265 thousand in total.

Trump hails brisk sales of Panama Ocean Club

July 2008

Almost 80 percent of Trump Ocean Club in Panama has already been sold – two years before the development is due for completion – announced Donald Trump Jr., vice-president of the Trump Organization.

The 70-story development is now under construction at Punta Pacífica. "Panama is a much more mature market than I had thought," Trump Jr.

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