Project Example 32

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.