Kuwait Financial Centre KPSC · KSE:MARKAZ
Kuwait Financial Centre KPSC — Kuwait Financial Centre S.A.K. (Markaz) — Investor Presentation (January 2010)
18 slides from Kuwait Financial Centre KPSC's investor presentation, January 2010
Slide 1: Kuwait Real Estate Investment Opportunity
Kuwait Real Estate Investment Opportunity MREF January 2010 Asset Management | Investment Banking Centered around your success
Slide 2: Outline
OUTLINE The Investment Environment Investing in Income Generating Assets Markaz added value MREF Markaz Real Estate team 2
Slide 3: The Investment Environment
The Investment Environment Kuwait Stock Market Index Current market conditions are characterized by low YOY correction of (52%) 16,000 visibility and high risk for short term investors. 14,000 12,000 Current equity investment landscape corrected 10,000 considerably and is still highly volatile and u
Slide 4: The Opportunity in Real Estate
The Investment Environment The Opportunity in Real Estate At current valuations, real estate presents an attractive investment opportunity. The market is destined to rebound from the current lows we are witnessing, at that time the availability of properties will diminish rapidly 4 Sources: Markaz A
Slide 5: Kuwait Real Estate Market Overview and Outlook
The Investment Environment Kuwait Real Estate Market Overview and Outlook Kuwait real estate sector is showing signs of stability after a wave of correction that took valuations 10-40% below their peak recorded prior to the international financial crisis, while the fund performance since the crisis
Slide 6: Income Generating Assets: Kuwait Market
Income Generating Assets Kuwait Market Kuwait Real Estate market corrected across all sectors and locations reaching attractive levels. Cap Rates Decrease in Property Values Sector & Areas Upto Q4-2009 Sector & Areas Pre-Crisis Current Investment Investment 7-9% 8.5-11% Bneid Al-Gar/Shaab Sea Front
Slide 7: Real Estate Supported by Market Fundamentals
The Investment Environment Real Estate Supported by Market Fundamentals The positive outlook for the real estate market is based on strong underlying fundamentals: 14% 4.5 12% 4.0 92 10% 78 81 3.5 74 8% 68 69 3.0 59 60 6% 2.5 49 4% 2.0 34 2% 1.5 0% 1.0 -2% 0.5 -4% 0.0 Real GDP growth (%) Population
Slide 8: The Investment Case
Income Generating Assets The Investment case Income generating assets provide unique Investment benefits: Liquid investment Steady monthly income Simplified Investment model. While the main risk is the market risk 8 Sources: Markaz Analysis
Slide 9: Markaz Added Value
Markaz Added Value Markaz has built an expertise in real estate and specifically in income generating real estate having managed the properties efficiently and secured high and safe returns to its investors. Markaz added value lies in Acquiring valuable properties through selecting the sectors to in
Slide 10: MREF Terms
MREF Terms MREF is an open ended fund investing in income and non-income generating properties with the aim to generate stable income and returns through prudent acquisition, management and disposal of properties in the most promising segments of the real estate market mainly in Kuwait. Term: The fu
Slide 11: MREF Performance
MREF Performance Markaz adopted a low risk investment approach for MREF: Investment Invested in a balanced portfolio of 12% Commercial 33% properties with the aim of 28% generating stable income and Industrial 17% returns Land 10% Cash Monthly Distribution per unit (fils) 6 Generated recurring retur
Slide 12: MREF Performance
MREF Performance MREF low risk investment approach shielded the fund against market crashes while yielding decent returns NAV (KD) 1.600 1.500 Adopted a conservative approach 1.400 1.318 with low risk of failure resulting in a 1.300 1.200 limited exposure to the market 1.100 correction 1.000 0.900 0
Slide 13: Operational Efficiency
MREF Operational Efficiency Growth In Rents (KD) Markaz managed the properties efficiently over the life 180,000 of the Fund. We have: 160,000 140,000 120,000 • Increased gross rental income by 36% 100,000 80,000 • Improved collection from 75% to 99%* 60,000 40,000 • Increased occupancy from 85% to
Slide 14: Markaz Real Estate Team
Markaz Markaz Real Estate Team Ali H. Khalil - Executive Vice President, Finance Mr. Khalil has over 20 years of extensive experience in Corporate Finance and related services and transaction structuring across various legal jurisdictions including the US, Kuwait and Europe: advisory services relate
Slide 15: Markaz Real Estate Team
Markaz Markaz Real Estate Team Milad A. Elia – Assistant Vice President, Real Estate Mr. Elia joined Markaz in 2006. As a Civil Engineer Mr. Elia worked over 4 years in Project management in various countries in the Middle East at Consolidated Contractors Company CCC and MID contracting. Mr. Elia's
Slide 16: Markaz Real Estate Team
Markaz Markaz Real Estate Team Tony Matta–Assistant Manager, Real Estate Mr. Matta joined Markaz in 2007. As a Civil Engineer Mr. Matta worked over 6 years in Project management and site supervision in various countries in the Middle East at Samir Khairallah & Partners (Consulting Engineers). Mr. Ma
Slide 17: Disclaimer
Disclaimer The Investment Policy and Strategy set forth in this Proposal have been prepared on the basis of certain stated assumptions. The investment results and performance cannot be predicted and no representation or warranty, express or implied, is made. Markaz shall have no legal or other liabi
Slide 18: Kuwait Financial Centre S.A.K. "Markaz"
Kuwait Financial Centre S.A.K. "Markaz" P.O. Box 23444, Safat 13095 State of Kuwait Tel: +965 2224 8000 Fax: +965 2241 4499 Email: [email protected] markaz.com
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