Tadhamon buys Saudi accommodation firm
Manama, March 30, 2010
Bahrain-based Islamic investment company Tadhamon Capital has acquired Consolidated Services Company (CSC), a Saudi firm which owns and operates labour accommodation.
CSC currently owns and operates accommodation for management and staff in Jubail Industrial City and other industrial areas in the kingdom. The transaction is valued at more than $22 million, and generates very attractive cash returns to the investors, said a statement.
“Despite the turbulent conditions experienced by the real estate market, our team continues to identify superior investments based on their solid understanding of the market and extensive experience in the field of real estate and private equity,” said Waleed Abdulla Rashdan, CEO of Tadhamon Capital.
The Jubail site lies on a 51,000 sqm plot of land, currently capable of housing 800 residents. However, current expansion on the site will increase occupancy to 1,500 by the middle of 2010. Services provided include daily housekeeping, laundry services, and meal plans. Other facilities include swimming pools, a golf range, gymnasium, sports room, multipurpose courts, internet café, as well as social gathering areas.
Jubail has been designated as an Industrial City by the Saudi Arabian Government and over the last ten years has witnessed rapid expansion and industrialisation.
The industrial city is a complex of local and international petrochemical plants, and houses a number of companies including the Middle East's largest and the world's 4th largest petrochemical company Sabic, and the recently announced Saudi Arabia Total Refining and Petrochemical (Satorp) company.
New industrial projects in Jubail are increasing the demand for housing units in the area. It is forecasted that Jubail Industrial City’s population will reach around 250,000 by 2020 from the current level of 160,000.
Tadhamon Capital is a 100 per cent owned subsidiary of Tadhamon International Islamic Bank (TIIB) which, in turn, is majority owned by a leading regional conglomerate, Hayel Saeed Anam & Co Group, with Qatar Islamic Bank also as a prominent shareholder.-TradeArabia News Service
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