K&N Kenanga Holdings Bhd has decided to sell and leaseback Kenanga International, the group's commercial building in Kuala Lumpur to Injaz Asiaequity Property Bhd (IAPB) for US$45.3 million.
In a statement yesterday K&N Kenanga said as a condition to the proposed sale and leaseback agreement, KMS will enter into a lease with IAPB for the 4th to 20th floors for 10 years, with an option to renew for a further five years.
IAPB, a special purpose vehicle established by Injaz MENA Investment in Abu Dhabi, RealCAPITA in Bahrain, and Asia Equity Partnership in Singapore, specifically incorporated for the proposed sale and leaseback, will sign a management agreement with KMS to appoint the latter as property manager of the building.
K&N Kenanga said the gross proceeds from the exercise will be used to reduce KMS borrowings of up to US$8.3 million, increase the capital base of the company to attain investment banking status, partially finance its overseas ventures (specially Saudi Arabia), and for working capital.
Injaz Asiaequity Property Fund has been launched by Abu Dhabi based Injaz Mena Investment Company PSC in a partnership with Bahraini based RealCAPITA and association with Singapore-based fund manager, AsiaEquity Partners Pte Ltd.
Injaz Mena CEO Mr. Ahmed Bin Ali Al Dhahry said the US$100 million limited partnership fund would target high yield real estate opportunities in major cities across Asia.
Mohammed Al-Tawash Vice Chairman and President of RealCAPITA and Board member of IAPB added "This fund aligns with RealCAPITA's vision of creating wealth from real estate opportunities, with our diverse approach and offering alternative investment opportunities in partnership with special asset management firms in different jurisdictions".
K&N Kenanga plans to form joint ventures, particularly in Saudi Arabia, to carry out securities and investment banking-related activities as part of its initiative to expand its investment banking and stock broking business to reduce its dependency on the domestic market.
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About Injaz Mena Investment Company PSC
INJAZ Mena Investment Company PSC is an Abu Dhabi investment bank, established in 2005 and licensed by the UAE Central Bank, with a paid up capital of AED 330 million, to create value for potential clients and shareholders by identifying investment opportunities globally. Injaz Mena is primarily owned by prominent families of Abu Dhabi, together with Ali & Sons Group and other private and institutional investors.
About RealCAPITA B.S.C.
RealCAPITA is the alternatively new real estate investment firm based in Bahrain. With an authorized capital of US$200 million, and a paid up capital of US$54 million RealCAPITA is considered one of the largest institutions of its kind in the region. With it only starting in February 2006, RealCAPITA is already undergoing major projects such as Affordable housing in Morocco (Real Maroc), Amwaj Gateway in Amwaj Islands Bahrain, establishment of RealLANDS, Residential Community in Jassrah (Real Gardens), The Wind Tower offices and Residential suites in Um Al-Hassam (Real Suites).
About AsiaEquity Partners Pte Ltd
AsiaEquity Partners Pte Ltd has its operational base in Singapore. AsiaEquity Partners is granted the status of an Exempt Fund Manager and Exempt Corporate Finance Adviser by the Monetary Authority of Singapore under Financial Securities Act (Cap. 289). AsiaEquity Partners is also licenced as an Investment Manager in the Brunei International Financial Centre. The principals of AsiaEquity Partners are well respected professionals in the region having successfully transacted more than US$1 billion worth of real estate investments over the last five years. These transactions include the structuring of Islamic financing deals, securitisations and REIT formation.
© Press Release 2006
