Markaz MENA Real Estate Markaz MENA Real Estate Markaz MENA Real Estate Our Footprint Our Track...

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Transcript of Markaz MENA Real Estate Markaz MENA Real Estate Markaz MENA Real Estate Our Footprint Our Track...

  • Markaz MENA Real Estate March 2013

    Asset Management | Investment Banking

  • 2

    Markaz MENA Real Estate

    Markaz

    MENA Real Estate

    Our Footprint

    Our Track Record

    How We Work

    The Team

  • Established

    1973

    Weathered every market cycle

    ‟90

    ‟80

    And through the Iraqi Invasion

    Listed on KSE

    ‟97

    Full restructuring

    $0 AUM

    $3.1bn AUM

    150 Employees

    2012

    Offices:

    Kuwait (HQ)

    USA

    India

    Lebanon

    MENA Real Estate Offices

    3

    Markaz Leading Regional Financial Institution

  • 4

    Markaz Practices

    INVESTMENT BANKING

    Mergers and acquisitions advisory and

    execution

    Investment management and finance advisory

    Capital markets

    ASSET MANAGEMENT

    Mutual funds

    Alternative funds

    Portfolio management

    REAL ESTATE

    Middle East and North Africa

    International

    DIRECT INVESTMENTS

    Oil and Gas

    Buyouts

  • 5

    Markaz International Real Estate

    Our Presence

  • 6

    Markaz International Real Estate Products

    Markaz U.S. Industrial Realty Unit I

    2002-11 Core Investment, Industrial Sector, USA 12 industrial properties USD 150 mn Gross IRR : 11%

    Markaz U.S. Retail Realty Investment Unit III

    2004-14 Core Investment, Retail Centers, USA 13 retail centers USD 208 mn Cash on cash yield since inception : 5.58%

    Markaz U.S. Retail Realty Investment Unit II

    2003-07 Core Investment, Retail Centers, USA 7 retail centers USD 169 mn Gross IRR : 27.3%

    Markaz U.S. Multifamily Realty Investment Unit IV

    2008-13

    Multifamily Development, USA

    3 Projects (796 units)

    USD 166 mn

    Markaz U.S. Distressed Debt Program

    2010-14 Opportunistic / Distressed Debt 11 sub-performing and non-performing first-lien commercial mortgages USD 45 mn

    Active Since – 1978 Current AUM – US$ 562 Mn > 68 properties

  • 7

    Markaz MENA Real Estate

    Markaz

    MENA Real Estate

    Our Footprint

    Our Track Record

    How We Work

    The Team

  • 8

    MENA Real Estate Structure

    Operations

    • Deal Sourcing

    • Financial Analysis

    • Acquisition & Structuring

    • Investment Management & Exit

    Research & Analysis

    • Market Research

    • Macro & Sector Analysis

    Project Management

    • Technical Service Providers Selection

    • Project Management

    Support

    • Financial Management

    • Admin

    MENA Real Estate Department

    CEO COO

    EVP Head of Real Estate VP Real Estate Operations

    Real Estate Committee

  • 9

    MENA Real Estate The Team

    17 staff

    &

    3 on site

    12 Engineers

    161 years experience

    54 years at Markaz

    1CFA, 2CAs

    3 MBAs

    Team of qualified & experienced professionals

    Comprehensive talent across the whole real estate spectrum

  • 10

    Markaz MENA Real Estate

    Markaz

    MENA Real Estate

    Our Footprint

    Our Track Record

    How We Work

    The Team

  • 11

    Our Footprint Asset Allocation

    „Others‟ constitute investments in land plots and real estate funds and companies

  • 12

    Our Footprint Our Products

    Markaz Real Estate Fund (2002-...)

    Income generating fund, Kuwait

    Open ended, monthly dividends

    CAGR +9.5% p.a. since inception

    ARADI Development (2008- 2013)

    Land development KSA

    Close ended

    Durrat Al Nawras (2010- 2013)

    Villas Development, KSA

    Close ended

    Markaz Real Estate Opportunities Fund (2007-2014)

    Development fund

    KSA, Lebanon, Jordan, Syria, UAE

    Close ended, PE structure

    Lusail Waterfront (2007-2011)

    Land Development, Lusail Qatar

    Through Masraf Al Rayan, Close ended,

    Liquidated in 2011 at +20% return

    KIA Portfolio (2013-…)

    KIA mandate to invest KD 250 Mn in Kuwait Real Estate

  • 13

    Markaz MENA Real Estate

    Markaz

    MENA Real Estate

    Our Footprint

    Our Track Record

    How We Work

    The Team

  • 14

    Our Track Record Kuwait Performance - MREF

    Kuwait Focused

    Non Leveraged

    Income Generating Fund

    Operational since 2003

  • 15

    Our Track Record Current Development Portfolio

    Clemenceau - Residential

    54m USD

    ROI 50%

    Badaro - Residential

    16m USD

    ROI 49%

    Amman - Commercial

    10m USD

    ROI 11%

    Damascus - Commercial

    25m USD

    ROI 0%

    Al Nawras - Residential

    16m USD

    ROI 17%

    Al Rawabi - Residential

    13m USD

    ROI 22%

    Al Asdaf - Residential

    13m USD

    ROI 35%

    Al Reem - Residential

    15m USD

    ROI 16%

    Bneid El Gar - Residential

    29m USD

    ROI 18%

    Dasman - Residential

    48m USD

    ROI 25%

  • 16

    Our Track Record Previous Investments

    Doha - Lusail Waterfront Investment Company

    USD 27 Mn

    ROI 14%

    Riyadh - Al Falah Land Investment

    USD 15 Mn

    ROI 33%

    Al Khobar – Al Nimer Land Development

    USD 14 Mn

    ROI 21%

    Jordan – Amman Residential Development

    USD 2 Mn

    ROI – Break Even

  • 17

    Markaz MENA Real Estate

    Markaz

    MENA Real Estate

    Our Footprint

    Our Track Record

    How We Work

    The Team

  • 18

    How We Work Philosophy

    Philosophy

    Systematic

    analysis of

    Economy

    Real estate

    Segments

    Geography

    Prudent

    approach

    Identify Risks

    Non-Speculative

    Non-Emotional

    Innovative

    products

    Adapting

    Unlocking value

  • 19

    How We Work Risk Management & Corporate Governance

    Risk Management

    Risk Factors

    Political & Economic

    Real Estate Cycle

    Market

    Liquidity

    Ownership

    Model risks

    Transaction risk

    Mitigation

    Diversification

    Timing and diversification

    Expertise and network

    Property selection

    Legal Due Diligence

    Sensitivity analysis

    Efficient contracting

    Corporate Governance

    Structural

    Unitization

    Corporatization (SPVs)

    Management & Advisory Committees

    Regulatory Compliance

    Conflict of Interest Disclosures

    Operational

    Policies and Procedures

    Internal Audits

  • 20

    How We Work Added Value

    Knowhow

    Experience

    Expertise

    Dealing with Institutions

    Systematic

    Processes

    Procedures

    Network

    Consultants

    Contractors

    Brokers

    Partners

    Uninfluenced

    Driven by long term

    performance in line with client‟s

    objectives.

  • 21

    How We Work Three Inter Connected Systems

    Operations Management

    System

    Project Management

    System

    Financial Management Information

    System

    Standardized and documented operational processes

    Organized financial information flow

    Standardized project management policy & procedures

  • 22

    How We Work Processes

    Investing:

    Introductory Access

    Market Analysis

    Feasibility Analysis

    Deal Sourcing Deal

    Negotiation

    Due Diligence

    Acquisition and

    Structuring

    Investment Management:

    Investment Execution Structure

    Service Providers Selection

    Focused Market Study

    Development Management

    Property Management

    Marketing and Exit

    Exit:

    Closing Out

    Lessons Learned

    Distribution

  • 23

    Markaz MENA Real Estate

    Markaz

    MENA Real Estate

    Our Footprint

    Our Track Record

    How We Work

    The Team

  • 24

    The Team Markaz Senior Management

    Manaf Alhajeri - Chief Executive Officer

    Mr. Manaf Alhajeri is the Chief Executive Officer for Kuwait Financial Center. In this position, he is overseeing an institution with strong and deep legacy. Established in 1974, Markaz has the strategic focus to achieve regional leadership in asset management and investment banking.

    Prior to joining Markaz, Manaf Alhajeri held the position of Deputy Director in the Invest