GFH & KFIC announce early closure of Bayan Holding offer to fund Jordan Gate, Royal Village
Reflecting robust investor confidence in regional infrastructure related projects, Gulf Finance House B.S.C. (GFH) and Kuwait Finance & Investment Company K.S.C. (KFIC) have announced the early closure of their KD80 million private placement to fund Jordan Gate and Royal Village. These are two salient components of the Royal Metropolis project in the Hashemite Kingdom of Jordan.
Senior GFH and KFIC officials said that subscriptions in the investment product, launched recently, closed in record time before the targeted deadline of July-end 2005. Offers to subscribe to the fund totaling around KD120 million were received and the targeted amount of KD80 million was accepted and will be utilized in a capital increase of the Kuwait-based Bayan Holding Company K.S.C. (c), acquired to invest in the property market of Jordan.
Commenting on the enthusiastic response to the Bayan Holding offer, Mr. Esam Janahi, Chief Executive Officer and board member of GFH said: “The over-subscription of the Bayan Holding private placement endorses our confidence in the potential of Jordan’s economy and its prospects for investors. The closure of the private placement within a short time of its launch also reflects the rising appetite of regional investors for products of this nature linked to infrastructure and real estate development.”
Subscriptions in the investment product were offered at a price of KD 0.110 per share and the minimum investment was pegged at 100,000 shares.
Commenting on the closure of the subscription, Mr. A. Rahman Al-Saeed, Managing Director and Vice Chairman of KFIC, said that the strategic synergy between KFIC and GFH was a contributing factor in ensuring the success of the private placement. “As partners in Jordan Gate and Royal Village, we are extremely pleased about the success of the placement offer, encouraging us in the development of these landmark entities.”
Jordan Gate is the first phase of the Royal Metropolis project and will be jointly developed by GFH, KFIC and the Greater Amman Municipality. The Royal Village, a crucial component of the second phase – `The Districts’ – will be developed by GFH and KFIC together. Bayan Holding will develop the projects through two Jordanian private shareholding companies.
“Jordan Gate and Royal Village have already attracted attention across the region because of the uniqueness of these projects. These two crucial components of the Royal Metropolis project will add value to the economy of Jordan, contributing to channeling investments into the Kingdom,” Mr. Al Saeed said.
Construction of Jordan Gate has already begun next to the prestigious location of the 6th Circle in Amman. Jordan Gate will include two high-rise towers, comprising of the Hilton Amman, a luxurious five-star hotel, and a world-class office tower offering prime office space, connected by a shopping mall and a services area.
Royal Village will consist of a gated residential community with approximately 400 villas and 600 apartments. It will also have an exclusive boutique shopping mall, a school and parks. Royal Village will be developed in Marj Al-Hammam along the main highway to the Dead Sea.
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