RealCAPITA B.S.C (Closed)

Malaysia
Kingdom of Saudi Arabia
France
India
Morocco
RealCAPITA B.S.C (Closed)
Bring Value to Life
Singapore
Kingdom of Bahrain
Company Profile
June 2009
Contents
•
Summary
4
•
RealCAPITA Overview
5
•
Board of Directors & Executive Management
6
•
Key Alliances
•
Global Assets Under Management
10
•
Land Bank Under Management
11
•
Financial Performance
12
•
Our Geographical Coverage
13
•
Our Approach
14
•
Our Competitive Advantage
15
•
Investor’s Risk and Return Profile
16
•
Working with RealCAPITA
17
•
Appendix – Track Record
7-9
18-29
3
Summary
• A private owned developer and investment house focused on emerging markets.
• Develops project concept, commits seed investment and syndicates to other investors.
• Undertakes project management and leasing/sales activities.
• Since inception in April 2006, RealCAPITA has managed investments of US$ 3.9 billion at
cost or US$ 5.1 billion at market value.
• Achieved annualized return on capital of 16% over 33 months period.
• Has a landbank of over 55 million sq.ft. (representing a five year project pipeline).
• Around 60% of project portfolio is mixed-use of which 98% in MENA.
• Built up area under development is 12 million sq.ft. (14,000 units).
• Active in ten countries in Europe, Africa and Asia.
4
RealCAPITA Overview
• RealCAPITA is a real estate investment company founded in April 2006, with a paid-up capital of US$ 54 million and
an authorized capital of US$ 200 million. By the end of 2007, the paid up capital has been increased to US$ 65 million
through bonus shares.
• We are based in Bahrain and have projects that span the Middle East and North Africa (MENA) region, Europe,
and the Far East.
• We devise and execute carefully considered investment strategies that provide upside potential in both rental
yield and capital appreciation, while maintaining optimal risk & reward balance to our investors, in our capacity
as Lead Arrangers and Promoters.
• Our business’s success has been propelled through developing long term partnerships, thought leadership,
operational synergy, and privileged transaction flows.
• We seek and inspire value-rich investment opportunities, developing market-driven projects and providing
diversified real estate services aligned to our investors and end-user needs.
• We offer regional and global products & services spanning a range of asset classes covering:
•
•
•
•
•
Land Investments
Real Estate Development:
Architectural Design
General Contracting
Project Management
•
•
•
•
Property Acquisition
Property & Facility Management
Investment in Global Real Estate Funds
Establishment of real estate companies in GCC Countries
5
Board of Directors & Executive Management
Bankers
Kuwait Finance House
Bahrain Islamic Bank
Chairman: H.E. Ahmed Bin Ali Al-Dhaheri
Vice Chairman: Mr. Mohammed Al-Dossari ´
Managing Director & CEO: Mr. Mohammed Al-Tawash ´ W
Auditors
Delloitte & Touche
Board Members:
H.E. Khalid Bin Nasser Al-Misnad ´
Mr. Yousif Al-Mutlaq #
Mr. Omar Bin Ali Al-Babtain ´
Mr. George Younan #
Deputy Chief Executive: Qais AlMaskati ´ *
Chief Financial Officer: Hasan Al Mansoor ´ W
* Member in Investment Committee
# Member in Audit Committee
´ Member in Executive Management Committee
W Member in Tender Committee
Director of Real Estate Development: Mohammed Dhaif ´ W
Director of Investor Relations: Nader Sarhan ´
6
Key Alliances
Shareholders
7
Key Alliances
Strategic Relationships
Financial Institutions
Business Consultants
Development Consultants
Developers
Real Estate Consultants
8
Key Alliances
Strategic Relationships
Developers
Investment Institutions
Media
9
Global Assets Under Management
Investments by Real Estate Type
Investments by Region
FUNDS
5%
INTERNATIONAL
4%
RESIDENTIAL
20%
MIXED USE
60%
BAHRAIN
29%
OFFICE
15%
MENA
67%
Growth in Investment Value (US$ Milion)
1,600
1,250
Investments at cost
30%
Growth
Investments at current market value
10
Land Bank Under Management
• RealCAPITA is currently managing a land bank focusing on the Gulf Corporation Council (GCC) countries and
extending towards North Africa and Western Europe
• To date, the total size of lands acquired has exceeded 55 million sq. ft. at a total value of US$ 318.5 million.
• RealCAPITAs’ expansion plans are set to cover the entire region by 2010.
Kingdom of Saudi Arabia:
Total Area: (000 ft²): 3,055
Value (US$ million): 5.1
France:
Total Area: (000 ft²): 226
Value (US$ million): 29.8
Kingdom of Bahrain:
Total Area: (000 ft²): 2,625
Value (US$ million): 139
Kingdom of Morocco:
Total Area: (000 ft²): 49,148
Value (US$ million): 140
United Arab Emirates:
Total Area: (000 ft²): 18
Value (US$ million): 4.4
Current
Sultanate of Oman:
Total Area: (000 ft²): 102
Value (US$ million): 0.2
Intermediate
Long-term
11
Financial Performance
TOTAL INCOME
14.37Million
US$
2007
145.54 Million
US$
75.28 Million
2008
2007
2006
US$1.58 billion
US$1.25 billion
US$1.06 billion
2008
NUMBER OF PROJECTS
UNDER CONSTRUCTION
2008
2007
2006
21
US$145.54 million
US$116.43 million
US$104.82 million
TOTAL SHAREHOLDERS' EQUITY
US$
1.58 Billion
2006
US$14.37 million
US$23.66 million
US$13.85 million
TOTAL ASSETS
US$
MARKET VALUE FOR PROJECTS
UNDER CONSTRUCTION
2008
2008
2007
2006
US$75.28 million
US$75.57 million
US$62.85 million
12
2007
2006
21 projects
15 projects
11 projects
Our Geographical Coverage
• Our investment strategy is to expand globally through monitoring upcoming and emerging markets. This is
conducted by using a range of indicators that detect market inefficiencies and seeks to exploit them.
Current
Intermediate (2 - 4 years)
Long-term (5 years & above)
13
Our Approach
Investment Appraisal
RealCAPITA adheres to an integrated
and cohesive set of investment
selection, appraisal and execution
strategies.
Investment
Structure
2
Maximum
Return
Due
Diligence
Market
Understanding
1
Investment Selection
Management
Strategy
Origination
Geographical
Suitability
3
Funding
Strategy
14
Investment
Strategy
Investment Execution
Our Competitive Advantage
• We aim to leverage the comprehensive strengths of RealCAPITA and its long-term partners in pursuing
innovative and profitable investments.
Investment Projects
Architects
Consulting Firms
Construction Firms
• An established
network of local and
international firms
• Utilizing internationally
recognized consulting
firms to provide
professional third party
input as part of the
diligence process
• Work with leading
firms with strong
proven track records
• Selection based on
service quality and
references
• Cooperation with local
firms, which are closer
to the market
• Rigorous selection
process based on
clearly defined
specifications
Strategic Partner Base
15
Communication
Agencies
• Product marketing
conducted in close
cooperation with
communication
agencies
• Use of multi-channel
communication to reach
a wide consumer base
Investor's Risk and Return Profile
RealCAPITA pursues a balanced investment strategy between new real estate development projects and acquiring
existing properties in order to maintain a stream of income proceeds while ensuring a healthy growth in the capital
base. All this is done through the careful monitoring of the risks associated with each new investment.
RISK VERSUS RETURNS
SECURITY OF INCOME
RISK RETURNS (Potential excess returns
over bank rate, annualized)
24%
GROWTH ORIENTED
Speculative
developments
in new
areas
Speculative
development
in new
areas
22%
20%
Real estate development in secondary locations
18%
16%
Real CAPITA
focus area
Real estate development in prime locations
14%
Redevelopment of existing buildings
12%
Acquisition of existing buildings in new areas
10%
(Potential
8%excess returns over
bank rate, annualized) Acquisition of existing buildings in secondary locations
6%
4%
Acquisition of existing buildings in prime locations
RETURNS
1%
0%
5%
10%
15%
20%
25%
30%
35%
loss
of investment
or equity)
RISK
RISK(potential
(Potential
loss
of investment
or equity)
16
40%
45%
50%
Working with RealCAPITA
• Experienced Management Team – a team of seasoned real estate professionals with a proven track-record in
acquisitions, finance, institutional asset management, financial engineering, concept development, fund raising,
marketing, and project management and property management, to provide discerning investment decisions.
• Innovative Investment Solutions – enables us to stay abreast with the ever-changing marketplace and its competitive
challenges to gain and produce solid returns
• Extensive Global & Regional Network – extending from our regional shareholders of diversified industry leaders,
who bring with them a wealth of experience and unmatched access to the most exciting emerging markets and the
best on and off market investment opportunities
• Meticulous Due Diligence Processes – providing our clients with carefully selected investment opportunities that
balance risk with reward ensuring maximum ROI and selection of the optimal investment opportunities.
• Performance Reporting – to maintain client communication and update investors on continued progress
• Strong Track Record- enables us to reach out to a wide base of sophisticated investors who have participated in
the opportunities and prospects presented with our investors including: • Direct Private Investors
• Real Estate Funds
• Family Office
• Private Banks
17
• Institutions
Track Record
18
Track Record - Summary
Project
Type
Location
Inception
Exit
Value
IRR*
The Wind Tower
Office
Bahrain
Q1 2006
2008
US$ 16mn
13% pa
RealGARDENS
Residential
Bahrain
Q1 2006
2009
US$ 37mn
16% pa
Reem Investment
Mixed
UAE
Q2 2006
2008
US$ 4mn
15% pa
RealLANDS
Land bank
Bahrain,GCC
Q2 2006
2008
US$ 25mn
20% pa
RealSUITES
Residential
Bahrain
Q3 2006
2008
US$ 18mn
15% pa
InjazAsia
Office/Retail
Far East
Q3 2006
2008
US$ 100mn
25% pa
Amwaj Gateway
Residential
Bahrain
Q4 2006
2009
US$ 267mn
23% pa
RealMAROC
Residential
Morocco
Q4 2006
2011
US$ 545mn
31% pa
RealRESIDENCE
Residential
Bahrain
Q1 2008
2010
US$ 48mn
23% pa
Creek Mall
Retail
Pakistan
Q1 2007
2010
US$ 1mn
35% pa
North Star II
Mixed
Bahrain
Q2 2007
2010
US$ 27mn
20 % pa
RealPALAIS
Residential
France
Q3 2007
2010
US$ 112mn
16% pa
JUBAIL Development
Residential
Saudi Arabia
Q4 2007
2011
US$ 53mn
18% pa
*Net of all fees
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CREEK MALL
NORTH STAR
Track Record - Summary
Project
Type
Location
Inception
Exit
Value
IRR*
RealVIEWS
Residential
Bahrain
Q2 2008
2010
US$ 28mn
21% pa
Real Business Park
Office
Bahrain
Q2 2008
2011
US$ 721mn
21% pa
Tangier Investment Park
Mixed
Morocco
Q1 2008
2011
US$ 2.8bn
34% pa
Bait Al Mal Al Khaleeji
Financial
Saudi Arabia
Q3 2008
2013
US$ 13mn
20% pa
Bahrain Logistics Company
Logistics
Bahrain
Q3 2008
2011
US$ 13 mn
27% pa
*Net of all fees
20
TIP
Bait Al Mal Al Khaleeji
BLC
Track Record - Projects
RealMAROC
Amwaj Gateway
Tangier, Agadier,
Marrakech, Casablanca - Morocco
Amwaj Islands - Bahrain
•
•
•
•
•
•
•
•
•
•
Inception Date: Q4 2006
Value: US$ 267mn
Built Up Area: 1.9 million sq ft
No. Units: 550
Completion Date: 2010
Investment Summary
Inception Date: Q4 2006
Value: US$ 545mn
Built Up Area: 9 million sq ft
No. Units: 13,000
Completion Date: 2011
Investment Summary
Developing six 20-story residential towers and townhouses which
are located at the entrance of Amwaj Islands. The development shall
accommodate 550 units within a gated community supported by a
wide range of amenities. The project has been awarded the 1st Green
Buildings Award in Bahrain reflecting its notable efforts to promote
energy efficiency from the design stage to final implementation.
This development of 13,000 upper-class affordable housing units
in major Moroccan cities will be carried out in partnership with a
leading Moroccan developer, Jet Group, our country partner. Jet
Group has a long track record in developing affordable housing of
the highest quality in their class, backed by strong control of their
supply chain.
21
Track Record - Projects
RealRESIDENCE
RealSUITES
Al Hidd - Bahrain
Umm Al Hassam - Bahrain
•
•
•
•
•
•
•
•
•
•
Inception Date: Q3 2006
Value: US$ 18mn
Built Up Area: 130 thousand sq ft
No. Units: 64
Completion Date: 2008
Inception Date: Q1 2008
Value: US$ 48mn
Built Up Area: 345 thousand sq ft
No. Units: 144
Completion Date: 2010
Investment Summary
Investment Summary
This development of eight 6-storey buildings (each with a unique
façade) will be located in the newly residential zoned Al Hidd
area. The project will provide 144 high standard units for sale.
The Al Hidd area is witnessing rapid developments, as it prepares
to house Bahrain’s largest commercial sea port with supporting
industrial and commercial facilities.
Developing two 12 storey luxurious towers situated in Um
Al Hassam, Bahrain. The intention is to develop the properties
for rental income. The central locality of the project, and the
high demand and limited availability of high-end apartments
in the area position it to attract strong returns to investors.
22
Track Record - Projects
RealPALAIS
RealGARDENS
Saint Julien en Genevois - France
Al Jasra - Bahrain
•
•
•
•
•
Inception Date: Q1 2006
Value: US$ 37mn
Built Up Area: 296 thousand sq ft
No. Units: 60
Completion Date: 2009
•
•
•
•
•
Inception Date: Q2 2007
Value: US$ 112mn
Built Up Area: 170 thousand sq ft
No. Units: 182
Completion Date: 2010
Investment Summary
Investment Summary
Developing 47 luxury villas for sale located in Al Jasra. The
development also houses several swimming pools, tennis
courts, a health club and a play ground for kids. Al Jasra is an
exclusive residential area that attracts the upper-end of society.
Developing eleven 3-4 storey buildings that offer 182 luxurious
residential units. The property is located in Saint Julien en
Genevois on the French side of the Swiss-French borders. The location
is extremely attractive due to it’s close proximity to Geneva (8 km).
23
Track Record - Projects
RealLANDS
JUBAIL Development Co.
Bahrain & GCC
Jubail – Saudi Arabia
•
•
•
•
•
Inception Date: Q1 2007
Value: US$ 53mn
Type: Company
IRR: 18% per annum
Exit opportunity: 2011 through IPO
•
•
•
•
•
Investment Summary
Inception Date: Q2 2006
Value: US$ 25mn
Type: Land Acquisition
IRR: 20% per annum
Exit: 2008
Investment Summary
The establishment of a specialized company (RealLands) that
focuses of land acquisitions in Bahrain and the GCC region. The
company has acquired and successfully disposed of several land
plots around the GCC region. The main investment strategy for the
company is tapping into high growth areas with strong potential
for upside.
The establishment of a real estate development company
focusing on residential properties in the city of Jubail. Jubail
is a global player in the petroleum industry and suffers from a
severe shortage of residential units. RealJUBAIL will address
this attractive market need and will also benefit from the effect
of well-supported housing programs run by most industrial
employers.
24
Track Record - Projects
Wind Tower
InjazAsia
Diplomatic Area - Bahrain
•
•
•
•
•
South East Asia
Inception Date: Q1 2006
Value: US$ 16mn
Type: Income Generating Property
IRR: 14% per annum
Exit: 2008
•
•
•
•
•
Inception Date: Q3 2006
Value: US$ 100mn
Type: Real Estate Investment Fund
IRR: 25%
Exit: 2008
Investment Summary
Investment Summary
The establishment of Injaz Asia as a property fund focusing on investing
in the real estate market in both developing and emerging economies in
South East Asia. The fund is dedicated to invest directly in opportunistic
property assets in Singapore, Hong Kong and Malaysia among other
key cities in Asia. Its strategy will seek to acquire, own and manage
distressed and undervalued properties in prime locations with high
potential for value appreciation through tactical turnovers.
The acquisition of the Wind Tower, which is a Grade A Office/
Commercial building located in the heart of the Diplomatic Area
in Bahrain. The tower is an income generating asset with all the
modern amenities including parking, security, maintenance and
service facilities provided to its tenants.
25
Track Record - Projects
RealVIEWS
Real Business Park
Manama - Bahrain
Amwaj - Bahrain
•
•
•
•
•
Inception Date: Q2 2008
Value: US$ 28mn
Built Up Area: 188 thousand sq ft
No. Units: 58
Completion Date: 2010
•
•
•
•
•
Inception Date: Q2 2008
Value: US$ 721mn
Built Up Area: 2.9 million sq ft
No. of Units: 700
Completion Date: 2011
Investment Summary
Developing the first business community in Amwaj Islands and the only
office address in Bahrain with beach-front facilities. The development
is a collection of 16 low-rise office buildings (6 stories each) along with
a range of supporting facilities (business centers, food outlets, etc.).
The project is located close to Bahrain International Airport, Khalifa
Port and the surrounding industrial zone.
Investment Summary
Developing a luxurious 22-storey high residential tower on Al Fateh
Highway, at the heart of the Capital Manama. The tower will deliver
premium residential apartments and the most exclusive sky villa in
Bahrain. The tower has uninterrupted sea views from the northeast, east and south-east sides.
26
Track Record - Projects
Tangier Investment Park
Tangier - Morocco
•
•
•
•
•
Bait Al Mal Al Khaleeji
TIP
Saudi Arabia
•
•
•
•
•
Inception Date: Q1 2008
Value: US$ 2.8bn
Built Up Area: 27 million sq ft
No. of Units: 7,500
Completion Date: 2011
Investment Summary
Inception Date: Q3 2008
Value: US$ 13mn
Type: Financial services company
Activities: Asset management, corporate finance and brokerage
Exit opportunity: 2011 through IPO
Investment Summary
Establishment of an industrial/logistics community in Tangier. The city is
going through an industrial expansion supported by new port facilities,
road and railway infrastructure. The development covers an area over
250 hectares and will involve various components. Medium and light
industries and logistic facilities are the core components supported by
a high-end office park, commercial outlets, and civic amenities.
The establishment of a non-banking financial services firm in
Saudi Arabia along with 4 partners (2 of which are GCC-based
financial institutions). The company intends to offer premium wealth
management, brokerage and corporate finance services to high net
worth Individuals and corporate clients in Saudi Arabia. The company
will be headquartered in Dammam, with offices in Riyadh and Jeddah.
27
Track Record - Projects
Bahrain Logistics Company
Bahrain
•
•
•
•
BLC
Inception Date: Q3 2008
Value: US$ 13mn
Type: Logistics Company
Exit opportunity: 2011 through IPO
Investment Summary
The company will offer logistic, warehousing and transport services.
The company brings together leading logistics partners in Bahrain
and the GCC including Yousif Bin Ahmed Kanoo, BANZ and TRAFCO.
The company will operate out of the industrial zone in Hidd area and
will extend operation to the Eastern Province in Saudi Arabia within
the second year of operations.
28
Investor Relations - Contact Details
Mr. Nader Sarhan
Director - Investor Relations
Tel: +973 17 51 66 87
Mobile: +973 39 904 032
Email: n.sarhan@realcapita.com
Mr. Jaffer Sultan
Mr. Hamad Al Essa
Ms. Ranya Al Arrayad
Manager - Investor Relations
(Kingdom of Saudi Arabia)
Manager - Investor Relations
(UAE, Kuwait)
Manager - Investor Relations
(Bahrain)
Tel: +973 17 51 66 25
Mobile: +973 39 904 037
Intl: +966 540 486 699
Email: j.sultan@realcapita.com
Tel: +973 17 51 66 94
Kuwait: +965 4034474
UAE: +97150 7218187
Intl: +973 39904095
Email: h.alessa@realcapita.com
Tel: +973 17 51 66 28
Mobile: +973 39 904 021
Email: ranya@realcapita.com
29