Freehold Free Zone (The Company), is a mega real state free trade zone development (588,793 M2 (145.5 acres) in the province of Limon, near the eastern coast of Costa Rica. The sponsors look to address the much needed demand for office space on the heel of the construction of the largest port in the country (the $1 Billion APM Terminals in the Moin Port), currently under construction on the Caribbean Sea and scheduled for completion in February 2018.
Free zone developments are income tax free incentives offered by the Costa Rican goverment to attract foreign and domestic companies interested in operating in the country. The Project will be developed in two phases. Phase I will be developed over an estimated 36 month period and phase II will be developed over an estimated 24 month period. The Project will feature the latest and greenest technology available today. In addition to housing corporate offices, logistics, production, international call centers, trading companies and operating centers, the development is also projected to feature a bank, a strip mall and a hotel. Construction is scheduled to commence in the fourth quarter of 2016.
Products and Services
Freehold Free Zone will attract businesses by offering an integrated infrastructure in a single location. The primary revenue center for The Company is to develop a business park combining commercial blocks and office buildings with the intent to sell, or lease to multinational and national companies. The sponsors will also seek strategic partners in the hospitality industry to build and operate a hotel, as well as a food court operator. Additionally, a major national bank will operate a full branch in the business center.
The Company was founded by Mr. Luis Diego Garro Sanchez, a respected and well accomplished businessman in Central America. Mr. Garro Sanchez has over 20 years of business experience with a very diverse background in many industries, including real estate. Given his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
The project is a one of a kind free trade zone business center being built on a 588,793 M2 (145.5 acres) property. Phase I will consist of the following:
Two office buildings of 3,000 M2 each housing approximately 36 customizable offices
Ten customized commercial blocks of 5,000 M2 each
Parking spaces (1,000 of 5 M2 each)
This Free trade zone complex is conveniently located in the town of Siquirres, Limon and is directly over the main highway linking the capital San Jose with the Port of Limon, the largest port in the country. Thus, offering excellent public transportation access and close proximity to the towns of Siquirres, Guapiles and Limon. It is 46 miles from the Juan Santamaria International Airport and approximately 31 miles from the Moin Port in Limon.
The free trade zone business model has proven to be quite successful in Costa Rica mainly due to its tax incentives, including 100% exemption for import and export duties, excise taxes, and remittances repatriation tax. Other incentives include employee training assistance in conjunction with the Instituto Nacional de Aprendizaje (National Learning Institute, or INA). Assistance is also offered regarding employee hiring, determining employee housing and educational needs. This business model has positively impacted the country, not only in terms of the arrival of fresh resources for the country, but also because of the creation of jobs, both directly and indirectly through production linkages.
PROCOMER (Foreign Trade Corporation of Costa Rica - Promotora del Comercio Exterior Costa Rica) estimates that there are over 300 multinational and national companies operating in free trade zones in the country. On an annualized basis, these companies generate exports exceeding $12 billion dollars while concurrently generating more than 80,000 direct and over 42,000 indirect jobs. The province of Limon does not have a single free trade zone in operation. This presents an excellent opportunity for The Company to develop, sell and lease its properties.
CINDE (Costa Rican Investment Promotion Agency) will introduce potential multi-national tenants and buyers to The Company. The marketing strategy task will be accomplished through the Company’s broad marketing campaign throughout its targeted market. The Company will also use an internet based strategy and will also develop its own online website.
The sponsors are seeking to raise $50 million from institutional or private investors, in order to complete phase I of the Project. For phase II, the sponsors are looking to raise an additional $150 million. The terms, dividend payouts, and aspects of the deal are to be determined at negotiation. This business plan assumes that an investor will receive a regular stream of dividends, once phase I is completed, as well as possibly a seat on the Board of Directors.
The sponsor’s mission is to develop the Freehold Free Zone project into a premier regional development business complex that will develop, sell and lease commercial units profitably, while providing much needed jobs to the town of Siquirres.
CURRENT VALUATION OF PROJECT
It has hired the international firm of Grant Thornton offices around the world and one of the consulting firms and audit most exclusive Costa Rica, represented by Lic. Javier Cotera Look for an evaluation of the project -Valuation today
The amount of the project in its first this is US $ 50 million and in the second stage of US $ 150 million projected to begin construction in 2017 and install the first companies , before the opening of spring APM Terminals will be until 2018.