Saturday, Feb 03, 2007
BEIRUT (Zawya Dow Jones)--Kuwait-based Ajal Holding, a unit of Kuwaiti holding firm Investors Group, or IG, has teamed up with Beirut-based Hayek Group to provide loans to acquire residential properties in Lebanon worth $1.5 billion, Hayek's chairman has said.
"Our 12-month target will be to provide loans to finance the purchase of Lebanese properties worth over $1.5 billion for Lebanese and Kuwaitis, who are living in Kuwait," Abdallah Hayek, told Zawya Dow Jones in an interview Thursday.
IG last week signed a strategic cooperation agreement with Hayek and Kuwait-based ASAS International Real Estate Developments whereby ASAS would promote the projects that Hayek Group will develop through the financing from IIG.
The Ajal plan will be launched shortly and is part of several other programs and projects that the three companies will cooperate in executing in the MENA region.
"We are going to develop real estate, tourism and financial services projects in Algeria, Egypt, Sudan and Lebanon," Hayek said.
"Concerning the Ajal program, ASAS will market the properties to the Lebanese and Kuwaitis," ASAS general manager, Michel Dib, told Zawya Dow Jones in an interview.
Hayek said the group plans to sell around 15,000 residential units directly without the help of Lebanese banks whereby Ajal will provide financing loans to the Lebanese and Kuwaitis in Kuwait to own houses in Lebanon.
"Later on Ajal will operate through the Jousour Bank in Lebanon which is going to be launched by the same three companies at the end of 2007 or early 2008," corporate consultant for IG, Aref Itani, told Zawya Dow Jones.
Hayek said there are around 60,000 Lebanese who are residing in Kuwait and if a minimum of 20% are interested in acquiring a property in Lebanon at a range of $100,000 per house then 12,000 units are expected to be sold.
He said if Kuwaitis are included then the figure will go to the initial target of 15,000 units.
"According to a recent study that was conducted by Hayek Group, there are 160,000 residential units which are offered for sale in Lebanon and through this program, we aim to sell 15,000 units in a year," Hayek said.
"Ajal will give confidence to the Lebanese private banks and financial institutions to provide loans to expatriates all over the world," Hayek said.
Ajal, which was established in 1998, has a paid-up capital of 18.7 million Kuwaiti dinars ($64.7 million) and focuses on providing consumer finance services.
IG provides financial and investment services according to Islamic principle, including underwriting, portfolio management and fund management.
Established in 1951, Hayek Group focuses on engineering studies and consultancy, general contracting, financing, facility management, marketing and feasibility studies.
Kuwait-based ASAS provides residential, commercial, and investment real estate services since 2003 in several countries such as Lebanon, the U.A.E., Bahrain, Qatar, Egypt, Bulgaria, Australia and England.
-By Nadim Issa, Zawya Dow Jones, +961 1 985757, nadim@zawya.com
Copyright (c) 2007 ABQ Zawya Ltd.
(END) Dow Jones Newswires
03-02-07 1040GMT
