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.
Real Estate Advisory Experience List
By Project Name | Country | Sector | Services Performed
2012
Feasibility study of a landmark real estate development in Syria | Syria | Real Estate | Financial and economic feasibility study, market research, and legal and tax advisory, for the development of a landmark real estate project in Syria
2011
Kuwait real estate market performance | Kuwait | Real Estate | Real estate performance and projections for all related sectors in Kuwait
Commercial offices real estate market performance in Kuwait | Kuwait | Real Estate | Real estate performance and projections for offices sector
Real estate market performance | Kuwait | Real Estate | Economy, sector, stock and company performance
2010
Advisory to a real estate company for selection of financial consultant for acquiring stake in another real estate company | Kuwait | Real Estate | Advisory to a real estate company for selection of financial consultant for acquiring stake in another real estate company
Real estate sector study | Kuwait | Real Estate | Developing a strategy for investing in the Kuwaiti real estate sector
Valuation of two international hotels and feasibility for development of additional hotels and residential/commercial buildings | Sudan | Hospitality | Valuation of two international hotels and feasibility for development of additional hotels and residential/commercial buildings for internal corporate purposes
Valuation of a real estate company | KSA | Real Estate | Valuation of a real estate company for divesture purposes
2009
Feasibility Study for two hotels, one convention centre, five exhibition centers and five trade centers in Kenya | Kenya | BOT – Hospitality | Economic and financial studies
Feasibility study for a residential tower in Abraj Quartier, the Pearl island | Qatar | Real Estate | Economic, market and financial studies
2008
Feasibility study for a commercial office building in Luseil | Qatar | Real Estate | Economic, market and financial studies
Feasibility study for a commercial building | Qatar | Real Estate | Economic, market and financial studies
Land purchase valuation advisory | Qatar | Real Estate | Financial valuation for a large mix of plots of land in Lusail
Quarterly high-end residential buildings market tracking study | Qatar | Real Estate | Prepare a quarterly report about the trends and prospects of the high-end residential buildings in Doha, Qatar | 2008 – Yearly
2007
Real Estate sector study | Qatar | Real Estate | Prepare a comprehensive report about the trends and prospects of the real estate sector in Qatar
2006
Feasibility study of a real estate development | Kuwait | Real Estate | Feasibility study of a landmark real estate property and preparation of an information memorandum
Market study on lands for sale in Muhaither area – Doha | Qatar | Real Estate | Economic, market and financial studies
2005
Valuation of a real estate company | Kuwait | Real Estate | Pre-valuation of a real estate company for acquisition purposes
Feasibility study for a tower in Porto Arabia, the Pearl Island | Qatar | Real Estate | Economic, market and financial studies
2004
Feasibility study of real estate development | Kuwait | Real Estate | Feasibility study of real estate development in Sharq area
Real estate sector study | Qatar | Real Estate | Prepare a comprehensive report about the trends and prospects of the RE sector in Qatar
High-end serviced apartments market study | Qatar | Real Estate | Survey of high-end serviced apartments in Doha, Qatar
2003
Establishment of a real estate company | Kuwait | Real Estate | Feasibility, financial & legal structuring soft marketing and capital placement
2002
Valuation of an international hotel chain | Kuwait | Hospitality | Valuation of hotel and real estate properties
Listing of a real estate company | Kuwait | Real Estate | Preparing placement memorandum for listing the company’s shares on KSE