Global Investment House (Global) has announced the launch of a new company with a capital of over KD180 million ($679 million) to boost its investment in Mazaya Saudi, which has been incorporated in Saudi Arabia, and will be managed by Mazaya Holding.  

Al-Thouraia Project Management Company will be utilized as a special purpose vehicle (SPV) to invest its whole capital in Mazaya Saudi, Global said. 

Mazaya Saudi will operate as a real estate development company in the Kingdom of Saudi Arabia in order to capitalize on the real estate boom in Saudi Arabia.

Mazaya Saudi will have a paid-up capital of SR2.5bn ($667 million) and conduct its business in accordance with Islamic Shari’a, said a Global official.

Omar M. El-Quqa, executive vice president at Global said that the company would manage the launch and private placement of the KD offering of Al-Thouraia to its investors.

'Al-Thouraia will invest its whole capital in the capital increase of Mazaya Saudi. Through this, investors will enjoy the fruits of the company's real estate plans and also benefit from the increased liquidity in the market and the strong economic growth witnessed in the Kingdom, which Mazaya Saudi will capitalize on,' he noted.  

Khaled Esbaitah, vice chairman & CEO of Mazaya Holding said Mazaya Saudi was gearing up to become a leading Saudi real estate company, and would use the funds raised through the capital increase to implement its aggressive expansion plans throughout the Kingdom, and to fuel its ambitious plans in becoming a leading real estate company in Saudi Arabia.

Esbaitah affirmed that Mazaya Saudi was embarking on an ambitious strategy in entering the Saudi real estate arena, a new era in corporate growth by positioning itself as a leading regional real estate company by entering new and lucrative markets.

Mazaya Saudi will provide comprehensive real estate services for all types of projects, and manage the projects from architectural design to execution. The Company will also conduct the following activities, as permitted by Saudi law: real estate development; marketing management & consultancy; project management & consultancy; strategic partnerships; real estate brokerage and property valuation & market research.

According to Esbaitah, Mazaya Holding will manage Mazaya Saudi, for an initial term of three years. The Company is targeting projects with a minimum Internal Rate of Return (IRR) of 15 per cent.

The Company’s initial venture would be to develop three plots of land in Riyadh, and will seek further opportunities in the Kingdom. The IRR based on a five-year holding period is expected to be in excess of 20 per cent, he said.   

The company plans to begin developing the three projects during the first year of operations. The three initial projects will be located in Riyadh and will include commercial and residential developments totaling over 150,000sqm of built-up area.

Projects under Mazaya Saudi will be designed in accordance with the latest construction and design standards.

'Mazaya Saudi will continue to identify attractive properties to development in the Kingdom of Saudi Arabia. The Company will either acquire these properties with its own capital or will enter into joint-ventures with land owners to develop their properties,' Esbaitah noted.

El-Quqa said  Mazaya Saudi’s strategic partners would add great value to Mazaya Saudi, lending expertise to the relevant needs of the company, financial backing, and industry insight. 

The partners include Al Mazaya Holding Company, Abdullatif Alissa Group Holding Company, Abdulaziz Alajlan Sons for Commercial and Real Estate Investment Company, Global Investment House and other strategic investors.-TradeArabia News Service