A distinctly upmarket mixed-use property in Lebanon has launched a $116.92 million private placement programme targeted at high networth individuals and institutions in the Middle East.
The Marina City project, with development costs estimated at $326 million, is promoted by RUSD Investment Bank of Malaysia, Joseph Khory, a Lebanese entrepreneur, and a "strategic" investor.
In the private placement, RUSD Investment Bank is offering 1.16 million shares at $100 apiece. Subscriptions will close end-September, though the promoters have kept the option of keeping it open until its targets are met.
An operating company, Marina Village International, has also been set up.
After the private placement, RUSD expects to have a 20 per cent shareholding in the venture, while Joseph Khoury will have 25 per cent and the strategic investor 15 per cent.
The Marina City, which is in the final design stage, will spread over 81,000 square metres across the Al Maten coastline north of Beirut. It will include residential towers, a shopping mall, a hotel and facilities available under the timeshare programme.
Over 75 per cent of the land required for the development has already been acquired by Marina Village International.
Actual construction is scheduled to start some time during early 2005, with the first stages of the project set for completion over a period 30-36 months.
Lebanon has emerged as one of the "hottest" destinations for property related investments from the Gulf in the last few years, with such investors as Saudi Arabia's Prince Alwaleed Bin Talal, one of the world's richest men, seeking a slice of the market.
"We are expecting significant interest to the private placement programme from the Gulf states during our roadshow," said Adnan Mohammad Talmisany, vice-president for investment services at RUSD Investment bank.
"We will also be raising capital for the project from the selling of apartments and other features related to the development, within another six months or so."
According to the project details, investments into Beirut real estate have fetched returns of 10 per cent annually.
The Lebanese Government allowed foreign ownership of the Marina City properties in early June.
According to Dr Saleh Jamil Malaekah, chairman of the board of director of RUSD Bank, "Marina City is a unique real estate investment opportunity, in that it directly overlooks the beach of Greater Beirut — which currently lacks areas big enough for large projects.
Gulf News
