The US$302 million private placement initiative for the development of the first phase of the US$3.8 billion Legends integrated theme park project in Dubailand received a significant boost recently with the announcement that leading Kuwait-based financial institution, Kuwait Finance & Investment Company (KFIC), has subscribed to 20 per cent of the placement.
With this, over 80 per cent of the private placement has been picked up by institutional and individual investors. Legends, conceived as the single largest destination for family-oriented, leisure and entertainment tourism in the Middle East, is promoted by the Bahrain-based Gulf Finance House B.S.C., one of the leading Islamic investment banks in the region.
Mr. Esam Janahi, Chief Executive Officer, Gulf Finance House B.S.C., said: “Today’s announcement that KFIC will be investing in the Legends project is a clear indication of the substantial potential of this development as well as the enthusiasm that it has generated among the Pan-GCC investor community.”
“Legends is a singularly unique investment proposition. The response of investors ever since we unveiled the project in November 2004 has been excellent. In the short span of a month or so, 80 per cent of the private placement for the first phase has been subscribed to, indicating the confidence investors have in the potential of Legends,” Mr. Janahi said.
“The successful placement of a substantial part of the first phase of Legends has focused attention on the Dubailand project as a whole. It is expected that Dubailand will attract some 15 million tourists a year when completed, which will in turn significantly add to the value proposition of Legends on a long-term basis,” Mr. Janahi said.
Mr. Janahi further added: “Kuwait is a key market for GFH and we have a large investor base in that country. We welcome KFIC’s decision to partner us in Legends through its subscription in the private placement to the tune of about US$60 million. We look forward to a continued and similarly fruitful association with the company.”
Legends, the first integrated leisure and entertainment real estate development in the region, contains theme parks, themed hotels, retail facilities, a golf course and residential facilities and will be spread across an area of 24.7 million square feet in Dubailand.
The key components of Legends include three world-class theme parks – Legends of Arabia, Legends of Nature and Legends of the World – which together will form the largest temperature controlled theme parks in the world. Other components of the project include Legends Leisure Complex, which will be a vibrant mixed destination for family entertainment with a retail feature to it, a residential component - Living Legends, an office component – Trade Legends and a world-class nine-hole golf course – Golfing Legends.
Commenting on the decision to subscribe to the Legends private placement Mr. Abdul Rahman Al-Saeed – Vice Chairman and Managing Director (KFIC) said: “This is an important step in our efforts to source rewarding investment opportunities for our shareholders and clients. Furthermore, we view our relationship with GFH as a strategic one and look forward to additional partnerships.”
“We are confident in the GFH investment strategy, which has led to the development of such landmark projects like the US$1.3 billion Bahrain Financial Harbour and US$750 million Al Areen Desert Spa & Resort. As investors, we constantly search for quality investments and we are confident that Legends is one,” he added.
KIFC is a Kuwaiti company, listed on the Kuwait Stock Exchange (KSE), and is backed by an active and diverse shareholder base. Investment strategy is set by a professional management team with a long and successful track-record of making investments in the GCC.
Commenting on the enthusiasm of investors for the project, Mr. A. Rahman Mohammed Al Jasmi, Chief Placement Officer of GFH said: “Legends is an example of the way GFH innovates and creates new investment opportunities. Over the last five years, ever since GFH has come into being, we have won the confidence of a wide range of investors across the region, particularly from Kuwait.”
The first phase of Legends, which will be equity financed by the private placement, will begin in early 2005 and will be completed by 2007, when the first of the theme parks – Legends of Arabia- will become operational.
