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Markaz MENA Real Estate March 2013
Asset Management | Investment Banking
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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
$3.1bn AUM
150 Employees
2012
Offices:
Kuwait (HQ)
USA
India
Lebanon
MENA Real Estate Offices
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Markaz Leading Regional Financial Institution
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Markaz Practices
INVESTMENT BANKING
Mergers and acquisitions advisory and
execution
Investment management and finance advisory
Capital markets
ASSET MANAGEMENT
Mutual funds
Alternative funds
Portfolio management
REAL ESTATE
Middle East and North Africa
International
DIRECT INVESTMENTS
Oil and Gas
Buyouts
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Markaz International Real Estate
Our Presence
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Markaz International Real Estate Products
Markaz U.S. Industrial Realty Unit I
2002-11 Core Investment, Industrial Sector, USA 12 industrial properties USD 150 mn Gross IRR : 11%
Markaz U.S. Retail Realty Investment Unit III
2004-14 Core Investment, Retail Centers, USA 13 retail centers USD 208 mn Cash on cash yield since inception : 5.58%
Markaz U.S. Retail Realty Investment Unit II
2003-07 Core Investment, Retail Centers, USA 7 retail centers USD 169 mn Gross IRR : 27.3%
Markaz U.S. Multifamily Realty Investment Unit IV
2008-13
Multifamily Development, USA
3 Projects (796 units)
USD 166 mn
Markaz U.S. Distressed Debt Program
2010-14 Opportunistic / Distressed Debt 11 sub-performing and non-performing first-lien commercial mortgages USD 45 mn
Active Since – 1978 Current AUM – US$ 562 Mn > 68 properties
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Markaz MENA Real Estate
Markaz
MENA Real Estate
Our Footprint
Our Track Record
How We Work
The Team
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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
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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
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Markaz MENA Real Estate
Markaz
MENA Real Estate
Our Footprint
Our Track Record
How We Work
The Team
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Our Footprint Asset Allocation
„Others‟ constitute investments in land plots and real estate funds and companies
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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
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Markaz MENA Real Estate
Markaz
MENA Real Estate
Our Footprint
Our Track Record
How We Work
The Team
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Our Track Record Kuwait Performance - MREF
Kuwait Focused
Non Leveraged
Income Generating Fund
Operational since 2003
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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%
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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
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Markaz MENA Real Estate
Markaz
MENA Real Estate
Our Footprint
Our Track Record
How We Work
The Team
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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
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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
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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.
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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
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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
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Markaz MENA Real Estate
Markaz
MENA Real Estate
Our Footprint
Our Track Record
How We Work
The Team
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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 Investment Department in the Kuwait Fund for Arab and Economic Development more known as the Kuwait Fund, the bilateral donor agency arm the State of Kuwait operating in more than 100 developing countries worldwide. Manaf holds a B.S and M.S. in Civil Engineering from Kuwait University and is a Certified Finance Manager (NJ, USA).
Ali H. Khalil - Chief Operating Officer
Mr. Khalil has over 20 years‟ investment banking experience and over 23 years‟ experience in real estate investment, including acquisition and development of real estate projects in the US, Europe and the Middle East. During his career, he structured, launched, and participated in the management of several investment funds covering a wide range of asset classes, including equities, fixed income, derivatives, real estate and private equities. In addition, he led several investment banking mandates including equity and debt issues, and M&A transactions in the MENA region.
Mr. Khalil is currently the Chief Operating Officer at Markaz and its Chief Financial Officer since 1997. He heads Investment Banking and Asset Management. He is the Vice Chairman of the various Markaz committees namely, Investment Advisory and Credit and Assets Liabilities. He joined the Markaz Group in 1988 as Vice President of Mar-Gulf Management, a Markaz subsidiary in Los Angeles, California and is currently its Managing Director and in charge of Markaz‟ real estate investments in the US. Mr. Khalil holds a B.S and M.S. in Industrial Engineering from University of Texas A&M and an MBA from INSEAD, France.
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The Team MENA RED Executive Management
Bassam N. Al-Othman –Executive Vice President
Bassam Al-Othman has Over 24 years of experience in real estate development and investment, as well as, project management in the MENA region. Since joining Markaz in 2005 as Senior Vice President, he has led the MENA real estate team in launching and managing a number of funds and portfolios, spanning the whole spectrum of real estate investments themes, from income generation and land development and trading, to full development of residential and commercial real estate projects. Prior to Markaz, Mr. Al-Othman assumed executive positions at Kuwait Fund for Arab Economic Development, in charge of projects‟ appraisal and execution in Lebanon and Egypt.
Bassam holds a B.S in Electrical Engineering from North Carolina A&T University and an MBA from American University of Beirut.
Milad A. Elia – Vice President
Milad Elia joined Markaz in 2006 where he leads the operations team managing MENA real estate funds and investments. Prior to Joining Markaz, Mr. Elia worked over 4 years in Project management in various countries in the Middle East at Consolidated Contractors Company CCC and MID contracting. At Markaz, Mr. Elia work encompasses investment product development, structuring, placing, investing, managing and divesting real estate investments across the MENA region.
Milad holds a Civil Engineering degree from ESIB Université Saint Joseph Lebanon and an MBA from INSEAD, France.
Mohammad Kadry – Assistant Vice President
Mohammad Kadry has comprehensive experience in project management and construction Management fields for more than 19 years where he held various positions in major companies such as Technical Manager, Project Manager, Planning and Cost Control Manager in addition to litigation and claims supervising. He also obtained post graduate certificates in project management field and had comprehensive training in this field.
Mohammad holds a M.Sc Civil Engineering degree from Ain Shams University, Egypt and a Post Graduate Diploma in Construction Management from Cairo University, Egypt and IPMA Certificate from Donation Authority in Switzerland.
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The Team Staff Members
Anis-Patrick Jabre – Manager
Anis Jabre joined Markaz in 2010. As a Civil Engineer, Mr. Jabre worked for 2.5 years respectively as a site (SEG) and consultant (Samir Khairallah & Partners) engineer on various projects in Lebanon (Marina & Four seasons towers and the souks of Beirut). In 2007 Mr. Jabre joined AXA-REIM as an investment analyst where he worked on several real estate transactions. He then joined UFFI REAM as a senior investment analyst in their acquisition team for two years.
Anis holds a Civil Engineering degree from American University Of Beirut, Lebanon and an MBA from HEC-Paris, France.
Venkateshwaran Ramadoss ACA, CFA – Manager
Venkat Ramadoss joined Markaz in 2008 prior to which he worked with Roulac India Investment Advisory Services as an Associate Investment Analyst, before which he had worked in several organizations in India in the Investment Research and Banking sectors with a total work experience of more than eight years. At Markaz Venkat is involved in investment operations and heading research & financial management function.
Venkat is a CFA Charter holder, an Associate Member of the Institute of Chartered Accountants of India and is a commerce graduate from Bharathidasan University, India.
Mohammad Al Jeraisy – Assistant Manager
Mohammad Al - Jeraisy joined Markaz in 2008 as a real estate analyst. Prior to that he worked for two years at SSH International as a Structural Design Engineer where he was responsible for the production of final design covering analysis, structural calculation, and working drawings parallel to site supervision of construction. Currently, Mr. Al-Jeraisy main focus is the Real Estate in KSA where he is responsible for following up on developments, conducting due diligence on Real Estate market, and searching for new opportunities.
Mr. Jeraisy holds a B.S in Civil Engineering from the University of Louisiana, Lafayette, USA.
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The Team Staff Members
Swapnili Tewari – Senior Analyst
Swapnili Tewari joined Markaz in 2011 as a senior analyst. Prior to that, she had worked in India for more than five years with Hindustan Coca Cola Beverages Pvt. Ltd. a 100% owned subsidiary of The Coca Cola Company USA. Her last held position, prior moving to Kuwait, was Manager Accounting and Working Capital. At Markaz Swapnili is responsible for building and analyzing financial and operational systems and procedures.
Swapnili is an Associate Member of the Institute of Chartered Accountants of India and is a commerce graduate from CSJM University, India.
Bader Asadallah - Senior Analyst
Bader Asadallah joined Markaz in 2008 as a real estate assistant analyst. Prior to that he graduated from Kuwait Fund for Arab Economic Development Program for Engineers and Architects. Currently, Mr. Asadallah‟s main focus is the Real Estate market in Kuwait where he is responsible for managing income generating assets, searching for acquisition opportunities, conducting due diligence on opportunities and following the market for investment opportunities.
Bader holds a B.S. in Engineering Physics from the University of the Pacific, California, USA
Samar Al Hindawy – Senior Administrator
Samar Al-Hindawy joined Markaz in March 2006 . Prior to that, she worked for 3 years at Al-Essa Medical & Scientific Equipment Co. as an Assistant Administrator. Samar main focus is administration in the Real Estate Department and the daily administration of “Markaz Real Estate Fund”.
Samar hold B.S in English Literature from the Arab Open University, Kuwait.
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The Team Staff Members
Thomas K. Mathew – Senior Research Analyst
Thomas Mathew joined Markaz in 2012 as a real estate research analyst. Prior to joining Markaz, for the last 2 and a half years he has been working with Amba Research India Pvt. Ltd. as part of a leading Investment Bank‟s European Utilities & Alternative Energy sells-side research team and has over 6 years of Equity Research experience working on both sell-side and buy-side ends of the platform.
Thomas holds an MBA in Finance from Wigan & Leigh College, India and & Bachelors (Hons.) in Information Technology from Manipal Academy of Higher Education.
Khalid Asa’d Al-Ibrahim – Assistant Analyst
Khalid Al-Ibrahim joined Markaz in 2011 as a real estate assistant analyst. Prior to joining Markaz, he worked with Kuwait Fund on a Training Program from June 2010.
Khalid holds a B.S. in Industrial and System Engineering from the University of Wisconsin-Madison, WI, USA.
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The Team SPV Ground Staff
Khaled Abouzaid – Projects Manager - KSA SPV
Khaled Abuzaid joined Markaz Real Estate Investment Company MREICO (a fully owned Markaz subsidiary in KSA) in 2009. Prior to that he worked for over 16 years in projects construction management at Emak Marsa Alam in Egypt (Alkharafi Group) and Alfanar Real Estate in KSA. Mr. Abuzaid experience covers complete project life cycle including construction management, cost control and budgeting. Mr. Abuzaid is responsible for Markaz projects construction management in KSA.
Khaled holds Phd, Msc , and Bsc in Civil engineering from the Cairo University, Egypt.
Mamdouh Al Ashmawi– Project Manager - KSA SPV
Mamdouh Al Ashmawi joined Markaz Real Estate Investment Company MREICO (a fully owned Markaz subsidiary in KSA) in 2011. Prior to that he worked for over 13 years in contracting projects with the last three years at Al Fanar working in the Project Management as Project Construction Manager where he was responsible for managing project schedule, budget, and quality objectives. Currently, Mr. Al Ashmawi is working as Project Manager in Durrat Al Nawras project -54 Villas at Al Khober- KSA.
Mamdouh holds a B.S in Civil Engineering from the University of Zagazig, Cairo- Egypt.
Hani Moukahal – Project Manager - UAE SPV
Hani Moukahal joined Real Estate Options Company REOC WLL (a fully owned Markaz subsidiary in Abu Dhabi) in 2011. Prior to that he worked for over 20 years in construction and management of building projects, in U.A.E, Lebanon, Saudi Arabia, Bulgaria & Iraq responsible for project management, commercial management, claims preparation, project financial management, tendering and branch management.
Hani holds a BSc. Civil Engineering degree from the Bosphorous University (American University of Istanbul), Istanbul, Turkey – 1983
Kuwait Financial Centre K.P.S.C. "Markaz" P.O. Box 23444, Safat 13095
State of Kuwait
Tel: +965 2224 8000 Fax: +965 2241 4499
Email: [email protected] markaz.com
Asset Management | Investment Banking