United Real Estate Company (URC) has appointed Kipco Asset Management Company (Kamco) as financial advisor in the establishment of Mena Homes Real Estate Company.

Mena Homes is 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 is a closed shareholding company with a paid up capital of KD1 million ($3.78 million)  which was set up to focus strategically on residential development in the Mena region, said an official spokesman.

The company is expected to increase its capital base to KD50 million later in 2008 through a private placement offering that will be managed by Kamco. The expected offer price is KD0.105 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 deputy CEO at United Real Estate Company Abdulaziz Al Failakawi.

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 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 CEO at Kamco Saudoun Ali.

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. – TradeArabia News Service