Conservatorio is a small real estate firm operating within an historic downtown neighborhood in Panama City. Founded in 2004 by a Panamanian and an American, Conservatorio has grown to over 200 employees in the past 12 years with $39.8M in managed assets.
Their real estate development approach is nontraditional in many ways. The fundamental difference involves incorporating community externalities into a long-term investment horizon in order to mitigate risk of market decline.
Short-term vs. Long-term
Through this approach, long-term financial performance is explicitly tied to the health of the community. Thus, there exists an incentive to invest in maintaining the attractiveness and vibrancy of the neighborhood, as well as the health, wellness, and financial sustainability of its residents.
Conservatorio believes they will achieve smoother long-term profits as compared to the potential profits realized under a shorter horizon model that operates independent of the surrounding community. Such a spatially specific approach is also thought to lend itself well to investing in developing countries:
“The developer’s initial strategy, its exchanges with local and international stakeholders, and its subsequent responses illustrate the complexity of launching a mega-project in a foreign country.”
- Conservatorio