The Real Estate sector in Kuwait is one of the major non-oil sector contributors to GDP. Thus, as part of its commitment to providing key advisory services, AlShall has positioned itself as one of the leading real estate advisory firms in Kuwait.
Since 1997, AlShall has produced comprehensive real estate sector studies containing not only published financial data and indicators, but surveys so that an information gap relating to market dynamics, land prices, occupancy trends, rent rates in different areas and real estate sub-sectors is bridged.
This research base is highly valuable to AlShall internally as well as to its clients. AlShall’s commissioned specialized real estate studies are related to establishing real estate companies as well as feasibility studies of real estate projects in different sectors like residential, investment and commercial offices. These studies aim at maximizing returns while controlling risk factors.
Project Example – Establishing Companies and Private Equity Placement.
Assignment
Establishing, developing corporate strategy, licensing from regulatory authorities, and equity placement of three private sector real estate investment companies.
Client Name
Promoters of the three real estate investment companies.
Client’s Activities
Investment in real estate in Kuwait and MENA region.
Project Size
Collectively exceed USD 250,000,000 (KD 70,000,000).
Assignment Date & Duration
2009, average 6 months per entity.
Main Area of Focus
AlShall worked with the promoters of each entity to devise corporate concepts, setting the strategy and taking the concept for each company from idea to reality. Primary tasks for each company included setting strategy, conducting a feasibility study, acquiring the licenses, setting the legal & financial structure, soft marketing and placement of the full capital.
Services Provided
AlShall worked with the promoters of each entity to develop the company concept and conducted comprehensive feasibility studies including all sub-components such as market research, industry trends, demand quantification, competitors, customers, legal framework; identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and risks. AlShall built financial models for each entity to incorporate all these elements in pro-forma income statements, balance sheets and cash flows, supported by appropriate scenarios and sensitivity analysis. Furthermore, AlShall acted as the companies’ investment banker by placing all the required capital of each company with strategic and non-strategic investors.
Outcome
The capital for each entity was successfully raised; the companies were established and became operational.
Project Example – Feasibility Study.
Assignment
Establishing an Islamic Bank – Cham Bank, Damascus, Syria.
Client Name
Kuwaiti Real Estate Holding (formerly known as Kuwait National Real Estate Services Company).
Client’s Activities
Private sector company with real estate activities in Kuwait and the MENA region.
Project Size
USD 175,000,000 (KD 50,000,000).
Assignment Date & Duration
2004, 5 months.
Main Area of Focus
Carrying out a financial feasibility, developing economic and market studies, and making a final submission of the BOT proposal to the Municipality of Kuwait.
Services Provided
Conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. AlShall built financial models for each entity to incorporate all these elements in pro-forma income statements, balance sheets and cash flows, supported by appropriate scenarios and sensitivity analysis.
Outcome
Consultancy mandate fully executed and BOT competition won by the client.