In line with the growing maturity of the GCC markets and enhanced sophistication of customers in the region, the Kuwait-based Gulf Holding Company (GHC) today unveiled its a new business model based on its `Signature Series’ consisting of an existing portfolio of US$900 million worth investment products across realty and infrastructure sectors.
Announcing its new business model which focuses on highly differentiated, smart and value-driven product offerings, senior GHC officials said that the company plans to consolidate and enhance its position in the short to medium term in the regional realty market, which has the potential to grow to US$1 trillion by 2015. In the long-term, GHC will actively diversify into other emerging sectors and markets, through a holding company format.
GHC, which is a smart and forward looking holding company that boasts of a diversified and optimized investment portfolio, is also a gold sponsor at the ongoing 10th Kuwait Property Exhibition. Further, GHC also announced the appointment of KEO International as the project manager for its flagship project, Villamar @ the Harbour, at the exhibition.
Commenting on the idea behind GHC, Mr. Faisal Mutawa, Chairman, Bayan Investment Company, said: “In the last half a decade, Middle East economies have witnessed some of its best budgets driven by unprecedented repatriation of Arab wealth to the region, record oil revenues, rising FDI and strong thrust by the governments to enhance non-oil revenues. The combined effect of all this is excess liquidity, and rapidly growing investment avenues. We look at this as an opportunity which is why, along with Gulf Finance House, we set up Gulf Holding Company. The idea was to set up a completely new and focused company that would compliment our operations and also capture a substantial pie of these rapidly emerging markets.”
Outlining GHC’s new business model and charter Mr. Ahmed Al Ameer, Vice Chairman and Chief Executive Officer, GHC, said: “The robust economic scenario in the region has also resulted in a spurt of activity bringing in record investments in various sectors including real estate, retail, oil & gas and financial sector, especially Islamic Finance. GHC aims to contribute to this growth through offering differentiated investment products with an initial focus on the real estate and infrastructure development sector. We will maximize returns to our investors and shareholders through smart and intelligent investment operations.”
Additionally, as part of creating an opportunity for Kuwaiti and regional investors to take part in the company’s growth, GHC will also list its shares on the Kuwait Stock Exchange (KSE) in early 2007.
Elaborating, Mr. Al Ameer, said: “With the rapid growth in competition, the region today has come to be known for its varied parity claims. GHC believes that going forward these claims will not work and audiences will read through them if the offer is not innovative with strong and tangible focus on RoI.”
He said GHC has spent a considerable amount of time in articulating this new business model which is substantially different, niche and forward looking in its investment offerings, aimed only at serious investors. The `Signature Series’ , a first-of-its kind endeavour in the Middle East, is central to this growth strategy and business model and the aim is to ensure optimal premiums for investors and shareholders through the highest level of customization and differential. It would include designing and marketing products, investment opportunities and reality concepts that are smart, intelligent and are value-driven.
Furthermore, the appointment of KEO International as the project manager for Villamar @ the Harbour is in-line with the new business model and is part of GHC's overall strategy of appointing the best and most qualified partners for all initiatives.
Every project undertaken by GHC, or product introduced by it, will bear the distinct signature of an individual, an organization or a set of individuals, or would be design- centric based on utility. Further, they will be high-value added, forward looking and customized products and investment opportunities.
Through the `Signature Series’ GHC aims at channelising the excess liquidity in the region to investment opportunities that are productive in two ways. One, by contributing to the socio-economic growth of the region as investors participate in an array of development-oriented projects and products. Two, by helping investors reap the rewards of investment through higher returns.
Additionally, presenting an update on GHC’s flagship project, Engineer Nawaf R. Sadeddin, Chief Development Officer, BFH and Client Representative for Villamar @ the Harbour, said: “Since the launch we have made rapid progress on Villamar @ the Harbour with work on the project having already commenced. The entire project is scheduled for completion in early July 2009. Given our stringent systems, process and quality management regime we are confident of meeting these milestones without any compromise on quality.”
Commenting on GHC’s focus on technology and intelligent concepts, Ms. Donna Sultan, Vice Chairman and Chief Executive Officer, KEO International who are the Project Managers for GHC’s flagship project Villamar @ the Harbour, said: “With brilliant and beautiful projects such as Villamar @ the Harbour also comes a lot of technical and overall project management challenges which we are confident of smoothening out, in the process assisting GHC to deliver the project as per the master plan, within budget and as per the approved schedule of completion.”
With Villamar @ the Harbour, GHC has endeavoured to introduce elements and technologies that have never been tried anywhere in the region before. For instance, through the project, GHC is introducing the concept of an all-weather boardwalk, complete with a hydraulically controlled transparent cover made out of special material.
“For Villamar @ the Harbour, along with GHC, we have benchmarked the tendering process against global best practices and are currently at an advanced stage of finalizing local and international contractors. Furthermore, we are laying great emphasis on their careful selection. We are confident that this extra care being taken by the company to select only the best partners for the job will pay rich dividends,” Ms. Sultan added.
GHC Signature Series (Phase I - Real Estate Sector)
In the real-estate segment which forms the core of Gulf Holding Company’s short and medium term expansion strategy, the Signature Series would include two distinctive elements, namely:
Celebratory: These projects would bear the personalized signature of both globally and regionally known personalities. They would be customized to reflect the personalities of the individuals whose signature they carry creating not just a sense of differential but also ensuring exclusivity.
Concept: These projects would be distinguished based on their unique designs that would be trademarked, legally ensuring their uniqueness. These designs would be conceived by Gulf Holding Company and marketed to a select set of investors.
About Gulf Holding Company (GHC)
Launched in November 2005, in the State of Kuwait, Gulf Holding Company is a Sharia’ compliant company jointly promoted by Bayan Investment Company & Gulf Finance House. Gulf Holding Company has been specially set up to initially offer cutting-edge real estate investment products and services. In the long-term the company aims at diversifying in to a trusted holding company that boasts of smart, intelligent and value driven investment products and services. Core to its business model is the Signature Series which not just ensures Gulf Holding Company and its investors’ higher premiums and returns, through the exclusivity quotient, but also a very strong differential.
With a total paid-up capital of KD70 million, Gulf Holding Company initially floated a KD69 million placement offer to tap the investment potential of the real estate and infrastructure sectors of the region.
Today, the company already boasts of investments totaling US$ 900 million in two large-scale real estate developments in the Kingdom of Bahrain, namely: Villamar @ the Harbour at the Bahrain Financial Harbour and Downtown Al-Areen at the Al Areen development. Early next year, Gulf Holding Company aims at offering its shares to the public through a planned listing on the Kuwait Stock Exchange.
