company profile realcapita b.s.c (closed) june 2009 h.e. khalid bin nasser al-misnad ´ mr. yousif...

Company ProfileJune 2009

Bring Value to Life

RealCAPITA B.S.C (Closed)

France

India

MoroccoSingapore

Malaysia

Kingdom of Bahrain

Kingdom of Saudi Arabia

• Summary 4

• RealCAPITA Overview 5

• Board of Directors & Executive Management 6

• Key Alliances 7-9

• 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 18-29

Contents

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

6

Chairman: H.E. Ahmed Bin Ali Al-Dhaheri

Vice Chairman: Mr. Mohammed Al-Dossari ´

Managing Director & CEO: Mr. Mohammed Al-Tawash ´ W

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

Director of Real Estate Development: Mohammed Dhaif ´ W

Director of Investor Relations: Nader Sarhan ´

BankersKuwait Finance HouseBahrain Islamic Bank

AuditorsDelloitte & Touche

* Member in Investment Committee # Member in Audit Committee´ Member in Executive Management CommitteeW Member in Tender Committee

Shareholders

Key Alliances

7

Key Alliances

8

Strategic Relationships

Financial Institutions Business Consultants

Development Consultants

Real Estate Consultants

Developers

Key Alliances

9

Strategic Relationships

Developers Investment Institutions

Media

1,250

FUNDS5%

MIXED USE60%

OFFICE15%

RESIDENTIAL20%

INTERNATIONAL4%

BAHRAIN29%

MENA67%

Investments by Real Estate Type

Global Assets Under Management

10

Investments at cost

Growth in Investment Value (US$ Milion)

Investments at current market value

30%Growth

Investments by Region

1,600

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): 3,055Value (US$ million): 5.1

Kingdom of Bahrain:Total Area: (000 ft²): 2,625Value (US$ million): 139

Kingdom of Morocco:Total Area: (000 ft²): 49,148Value (US$ million): 140

France:Total Area: (000 ft²): 226Value (US$ million): 29.8

United Arab Emirates:Total Area: (000 ft²): 18Value (US$ million): 4.4

Sultanate of Oman:Total Area: (000 ft²): 102Value (US$ million): 0.2

11

Current

Intermediate

Long-term

Financial Performance

12

MARKET VALUE FOR PROJECTS UNDER CONSTRUCTION

NUMBER OF PROJECTS UNDER CONSTRUCTION

US$1.58Billion

21

2007

2008

2006

US$1.58 billion US$1.25 billion US$1.06 billion

2007

2008

2006

21 projects15 projects11 projects

TOTAL INCOME

US$14.37Million

TOTAL ASSETS

US$145.54 Million

TOTAL SHAREHOLDERS' EQUITY

US$75.28 Million

2007

2008

2006

US$14.37 million US$23.66 million US$13.85 million

2007

2008

2006


2008

2006


2007

• 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.

Our Geographical Coverage

13

Current

Intermediate (2 - 4 years)

Long-term (5 years & above)

Investment Appraisal

Investment Selection

RealCAPITA adheres to an integrated and cohesive set of investment selection, appraisal and execution strategies.

Our Approach

14

Investment Structure

Maximum Return

DueDiligence

Management Strategy

InvestmentStrategy

FundingStrategy

Origination

GeographicalSuitability

Market Understanding

Investment Execution

1

2

3

• We aim to leverage the comprehensive strengths of RealCAPITA and its long-term partners in pursuing innovative and profitable investments.

Our Competitive Advantage

15

Architects

• Anestablishednetwork of local and international firms

• Selectionbasedonservice quality and references

Consulting Firms

• Utilizinginternationallyrecognized consulting firms to provide professional third party input as part of the diligence process

• Cooperationwithlocalfirms, which are closer to the market

Construction Firms

• Workwithleadingfirms with strong proven track records

• Rigorousselectionprocess based on clearly defined specifications

Communication Agencies

• Productmarketingconducted in close cooperation with communication agencies

• Useofmulti-channelcommunication to reach a wide consumer base

Strategic Partner Base

Investment Projects

RISK VERSUS RETURNS

45%

1%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

50%40%35%30%25%20%15%10%5%0%

RETURNS

(Potential excess returns over bank rate, annualized)

RISK (potential loss of investment or equity)

Acquisition of existing buildings in prime locations

Acquisition of existing buildings in secondary locations

Redevelopment of existing buildings

Acquisition of existing buildings in new areas

Real estate development in prime locations

Real estate development in secondary locations

Speculative developments in new areas

GROWTH ORIENTEDSECURITY OF INCOME

Investor's Risk and Return Profile

16

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

RET

URN

S (P

oten

tial e

xces

s re

turn

s ov

er b

ank

rate

, ann

ualiz

ed)

Speculative development in new areas

RISK (Potential loss of investment or equity)

Real CAPITA focus area

Working with RealCAPITA

17

• 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:

• Real Estate Funds

• Private Banks

• Direct Private Investors

• Family Office

• Institutions

Track Record

18

18

Track Record - Summary

19

*Net of all fees

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

CREEK MALL

NORTH STAR

Track Record - Summary

20

*Net of all fees

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

Bait Al Mal Al Khaleeji

TIP

BLC

Track Record - Projects

21

Investment SummaryDeveloping 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.

• Inception Date: Q4 2006• Value: US$ 267mn• Built Up Area: 1.9 million sq ft• No. Units: 550• Completion Date: 2010

• Inception Date: Q4 2006• Value: US$ 545mn• Built Up Area: 9 million sq ft• No. Units: 13,000• Completion Date: 2011

Investment SummaryThis 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.

Amwaj GatewayAmwaj Islands - Bahrain

RealMAROCTangier, Agadier, Marrakech, Casablanca - Morocco


22

Investment SummaryDeveloping 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.

• Inception Date: Q3 2006• Value: US$ 18mn• Built Up Area: 130 thousand sq ft• No. Units: 64• Completion Date: 2008


Investment SummaryThis 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.

RealSUITES Umm Al Hassam - Bahrain

RealRESIDENCE Al Hidd - Bahrain


23

Investment SummaryDeveloping 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.

• 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 SummaryDeveloping 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).

RealGARDENSAl Jasra - Bahrain

RealPALAISSaint Julien en Genevois - France


24

Investment SummaryThe 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.

• Inception Date: Q1 2007• Value: US$ 53mn• Type: Company• IRR: 18% per annum• Exit opportunity: 2011 through IPO

• Inception Date: Q2 2006• Value: US$ 25mn• Type: Land Acquisition• IRR: 20% per annum• Exit: 2008

Investment SummaryThe 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.

JUBAIL Development Co. Jubail – Saudi Arabia

RealLANDS Bahrain & GCC


25

Investment SummaryThe 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.

• Inception Date: Q1 2006• Value: US$ 16mn • Type: Income Generating Property• IRR: 14% per annum• Exit: 2008

Wind TowerDiplomatic Area - Bahrain

Investment SummaryThe 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.

• Inception Date: Q3 2006• Value: US$ 100mn • Type: Real Estate Investment Fund• IRR: 25% • Exit: 2008

InjazAsia South East Asia


26

Investment SummaryDeveloping 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 north-east, east and south-east sides.


RealVIEWS Manama - Bahrain

Investment SummaryDeveloping 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.

• Inception Date: Q2 2008• Value: US$ 721mn• Built Up Area: 2.9 million sq ft• No. of Units: 700• Completion Date: 2011

Real Business Park Amwaj - Bahrain


27

• Inception Date: Q1 2008• Value: US$ 2.8bn• Built Up Area: 27 million sq ft• No. of Units: 7,500• Completion Date: 2011

Investment SummaryEstablishment 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.

Tangier Investment Park Tangier - Morocco TIP

Investment SummaryThe 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.

• Inception Date: Q3 2008• Value: US$ 13mn • Type: Financial services company• Activities: Asset management, corporate finance and brokerage• Exit opportunity: 2011 through IPO

Bait Al Mal Al Khaleeji Saudi Arabia


28

• Inception Date: Q3 2008 • Value: US$ 13mn • Type: Logistics Company• Exit opportunity: 2011 through IPO

Investment SummaryThe 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.

Bahrain Logistics Company Bahrain BLC

29

Mr. Nader SarhanDirector - Investor Relations

Tel: +973 17 51 66 87Mobile: +973 39 904 032

Email: [email protected]

Mr. Jaffer SultanManager - Investor Relations

(Kingdom of Saudi Arabia)

Tel: +973 17 51 66 25Mobile: +973 39 904 037

Intl: +966 540 486 699Email: [email protected]

Mr. Hamad Al EssaManager - Investor Relations

(UAE, Kuwait)

Tel: +973 17 51 66 94Kuwait: +965 4034474UAE: +97150 7218187Intl: +973 39904095


Ms. Ranya Al ArrayadManager - Investor Relations

(Bahrain)

Tel: +973 17 51 66 28Mobile: +973 39 904 021


Investor Relations - Contact Details

company profile realcapita b.s.c (closed) june 2009 h.e. khalid bin nasser al-misnad ´ mr. yousif...

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