United Real Estate Company Appoints KAMCO As Financial Advisor in the Establishment of New Residential Real Estate Development Company
MENA Homes Real Estate Company Expected to Raise Its Paid-up Capital from KD 1 million to KD 50 million in a private placement offering
United Real Estate Company (“URC”) appointed KIPCO Asset Management Company (“KAMCO”) as financial advisor in the establishment of MENA Homes Real Estate Company, a new real estate development company focused on the development of mid to high-end residential housing in the Middle East and North Africa (MENA) region.
MENA Homes Real Estate Company is a closed shareholding company with a paid up capital of KD 1 million which was set up to focus strategically on residential development in the MENA region. The company is expected to increase its capital base to KD 50 million later in 2008 through a private placement offering that will be managed by KAMCO. The expected offer price is KD 0.105 per share to prospective investors in Kuwait and the GCC region.
“We have identified a real market opportunity in the provision of specialized residential units in the MENA region and intend to maximize the return on this opportunity. Our confidence in our ability to provide successful real estate solutions is complemented by KAMCO’s financial investment service capabilities,” said Abdulaziz Al Failakawi, Vice CEO at United Real Estate Company. “We are delighted to be working together again on such a project with KAMCO, which is not only a fellow KIPCO Group member company but also a trusted advisor.”
Extensive research conducted by KAMCO on behalf of its client indicated a significant potential in the residential segment for mid to high-end housing, especially in Jordan, Egypt and the GCC region. MENA Homes Company was set up in April 2008 by United Real Estate Company, a KIPCO Group company as an anchor founder, to address the significant gap identified in the supply and demand of such specialised residential units.
“We are pleased to have been appointed as financial advisors by United Real Estate Company on this exciting assignment which commenced with the establishment of MENA Homes Company and that will continue with the raising of more investment capital through a private placement offering later this year,” said Mr. Saudoun Ali, CEO at KAMCO. “Our team is highly experienced in providing expert advice and support for structuring such projects and we are looking forward to contributing to the success of such a worthwhile venture.”
MENA Homes will continue to be an integral part of the URC Group and the proceeds of the share capital increase shall be directed towards future targeted acquisitions and projects in the residential segment across the MENA region.
