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Mayadeen signs MOU to acquire assets in UAE
11 November 2006
KUWAIT - National Ranges Company KSCC 'Mayadeen' announced today that it has signed a memorandum of understanding (MOU) to acquire real estate assets in Dubai and Abu Dhabi, United Arab Emirates, through its subsidiary.
Mr. Fawaz Ibrahim Al Qattan: Mayadeen has also secured two existing and income-generating properties in Emaar Business Park and one property under development in Dubai Healthcare City as well as plots in Shams Abu Dhabi for mixed use development, and will own and develop these assets.

This strategy will facilitate the Company's long-term expansion and diversification in the region's real estate sector.
  
This announcement follows the company's announcement last Monday that it will increase its paid-up capital from KD2.43 million to KD100 million, which will fund acquisitions it has already defined, and in turn, fund the future projects.

Mr. Fawaz Ibrahim Al Qattan, the Chairman of Mayadeen, said, 'After careful due diligence and intensive negotiations, the board approved Mayadeen to acquire, through its subsidiary, three major real estate assets which operate in the UAE real estate sector in the next ninety days.'

"These acquisitions correspond to Mayadeen's strategy to incorporate a mix of business ventures in the real estate sector by pursuing opportunities in the sector and providing its investors with revenue-based, geographical and operational diversification," he added.

In doing so, Mayadeen will emerge as a regional real estate company that will pursue opportunities within the respective sector. The identified acquisitions currently function within the Shams Abu Dhabi project, the Emaar Business Park and Dubai Healthcare City.

The targeted assets fall inline with Mayadeen's strategy. Mayadeen plans to immediately deploy the proceeds from the capital increase in order to acquire and develop real estate assets within the Shams Abu Dhabi development, and own and operate two existing real estate assets in the Emaar Business Park and one in Dubai Healthcare City.

Mr. Fawaz Ibrahim Al Qattan affirmed that these assets represent the first phase of Mayadeen's regional real estate plans, and will continue to redeploy cash assets into new development ventures and towards ownership of income-yielding assets through mix of equity and debt funds.

The acquired assets include three adjacent prime land parcels in Shams measuring 21,231sqm, to build four high-rise towers for residential and commercial purposes; construction to begin early 2007 and end during mid-2009. Primary consultants are under contract, and the developments are currently in the Design Stage. Turner Construction - International is providing Project Management Services, and R.W. Armstrong & Associates has been appointed as the Lead Design Consultant for the three plots secured on Shams.

The other assets include two existing buildings in the Emaar Business Park project (Building Building No. 2 and 4), which are currently 100% occupied, with an estimated acquisition cost of approximately AED500mn. The two buildings have a combined built-up area of 34,627sqm. The rental yield of Building No. 2 and 4 currently stands at 6.2% and 8.6% respectively, with the average long-term yield expected to increase to 9.3% and 10.1% respectively.

An office and a commercial building that is currently under construction in the Dubai Healthcare City, with a built-up area of 7,523sqm, which is expected to be completed by the end of November 2006. The building is to be purchased at a total cost of approximately AED105mn and is expected to generate a yield of nearly 10%.

Mr. Fawaz Ibrahim Al Qattan pointed that the acquired assets in both Abu Dhabi and Dubai are the Company's initial steps in implementing its regional expansion strategy. The transactions include a mix of Income-generating assets - concentration on office property in Dubai; current supply deficit and Development assets - concentration on residential units in Abu Dhabi; current supply deficit.

"Following the conclusion of the memorandum of understanding to acquire initial assets in Abu Dhabi and Dubai. Mayadeen is now positioned to embark on a new era to emerge as a regional player pursuing lucrative real estate opportunities through its subsidiary.'

In order to fund these asset acquisitions and associated development plans, Mayadeen is increasing its capital to KD100 million by the issuance of 975,692,080 new shares, in which the new investors will subscribe for 866,306,440 shares at price of 109.91fils per share, continued Mr. Fawaz Ibrahim Al Qattan.

Shareholders registered as of the end of trading session on November 11th, 2006 will receive 42,538,860 shares (1.75 shares for each held) as free distribution shares and 66,846,780 rights shares (2.75 shares for each held) at 100fils per share.

Distribution shares and rights shares will be offered on a "Pro rata basis" to shareholders registered as of the end of trading session on November 11th, 2006. The cost of free distribution shares to new investors by paying 4.91fils per share subscribed by them.

Mr. Fawaz Ibrahim Al Qattan concluded by mentioning that the lead manager for the rights and private placement of Mayadeen is Global Investment House 'Global' and shares will commence on November 15th, 2006 and close on December 13th, 2006.

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