Kuwait – March 16, 2017
United Real Estate Company (URC), leading real estate development company in the Middle east and North Africa region, has announced a 39.17% acquisition in leading Kuwaiti building materials company, Insha’a Holding.
URC’s Chairman Mr. Tariq AbdulSalam said that the deal represents the company’s first acquisition in the building and construction sector, and comes as a step towards the implementation of URC’s new strategy, which focuses on creating a balance in the sources of income and structuring a diversified portfolio of assets and various businesses that achieve a steady and sound rate of return.
Commenting on the news, Mr. Ahmad Kasem, URC’s Deputy Chief Executive Officer said that the acquisition is aligned with the company’s strategic direction to build and support its subsidiaries, in addition to enhancing their respective operating profits and diversifying its sources. The acquisition was made by URC’s wholly owned subsidiary, United Building Company (UBC), which represents the company’s contracting and building arm. UBC has been taking serious steps towards its planned expansion and growth to become a leading company in its field. Kasem also stated that the acquisition will lead to further operational efficiency for UBC, as Insha’a has outstanding activities in ready mix concrete, building materials, construction chemicals and manufacturing, which will add greater value and complement the construction and engineering expertise of the company.
URC’s Chief Investment Officer, Augostino Sfeir, added that the deal is in line with URC’s and Insha’a’s business structures, in addition to being in line with URC’s strategy to increase its returns and profit margins. The acquisition was in partnership with Qurain Petrochemical Industries Company (QPIC) a sister company of URC, for a total acquired interest of 97.93% and total value of KD 13.75 million, where QPIC’s share is 58.76%.
Mr. Mohammad Al Wetayan, Chief Executive Officer of United Building Company (UBC) said that Insha’a Holding is a local leader in building and construction materials, which will add significant value to UBC for all of its current and future projects. UBC and Insha’a have a similar strategic vision and a long history in the Kuwait construction sector that will allow both companies to create greater capabilities and growth.
Mr. Al Wetayan said UBC was positioning itself for further expansion in Kuwait’s public and private construction sector. Classified as a Grade “A” building and contracting company since 1984, UBC is a pioneer in the construction industry with a long remarkable track record and numerous iconic projects in Kuwait.
United Real Estate Company (URC) is one of the MENA region’s leading real estate developers, with total assets of KD 572 million (US$ 1.9 Billion) as of 31 December 2016. Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.
URC primarily operates in the Middle East and North Africa (MENA) region through a number of operational subsidiaries and investments arms. The company’s portfolio includes retail complexes, hotels, resorts, residential buildings, high rise office buildings, as well as mixed use developments. Operational assets include KIPCO Tower, Marina Hotel and Marina Mall in Kuwait, as well as Salalah Gardens Mall & Residences in Oman. Regionally, URC’s assets include Abdali Mall in Jordan, Raouche View at 1090 in Lebanon, Aswar Residences in Egypt and Assoufid in Morocco.
URC’s majority shareholder is KIPCO Group, one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 32.7 billion as at 31 December 2016. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group’s main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.
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United Real Estate Company
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© Press Release 2017