The project will cover nearly 3,000 acres and is adjacent both to the Panama Canal and the Base's airstrip. The 'Panama Pacifico' project, as it is known, will create a logistics hub and will include residential, office, and industrial space. The site also connects directly to the Pan-American highway, which connects North and South America.

London and Regional Properties, owned by brothers Ian and Richard Livingstone, fought off 15 other bidders including US Easton Group and Codina Group and Mexican Cabi Control to win the project, in an auction which was conducted by the World Bank's IFC 'soft-loan' arm.

Jason Mills, development director at London and Regional, said: "This underlines the attractiveness of Panama as a global investment destination."

London and Regional partnered with Panamian developers Isaac and Jaime Gilinski in making the bid, and say that they do not need further debt or equity partners for the project.

The Panamian government had long agonized over the fate of this and other ex-US bases and facilities, which were gifted by the Americans to the country when the US pulled out seven years, and are now rapidly decaying, but has finally decided to invite international finance to participate in their development.