Lebanon Real Estate Newsletter Vol. 3, Issue 2 - February, 2007

    Kuwait-based Ajal Holding, a unit of Kuwaiti holding firm Investors Group (IG), has teamed up with Beirut-based Hayek Group to provide loans to acquire residential properties in Lebanon worth $1.5 billion. “Our 12-month target will be to provide loans to finance the purchase of Lebanese properties for Lebanese and Kuwaitis, who are living in Kuwait,” said Abdallah Hayek.

IG has a strategic cooperation agreement with Hayek Group and Kuwait-based ASAS International Real Estate Developments whereby ASAS would promote the projects that Hayek Group will develop through the financing from IG. ASAS will market the properties to the Lebanese and Kuwaitis.

Hayek said that the group plans to sell around 15,000 residential units directly without the help of Lebanese banks, whereby Ajal will provide financing loans to the Lebanese and Kuwaitis in Kuwait to own houses in Lebanon. “We have received a preliminary agreement from the Central bank of Lebanon to open an Islamic investment bank that is in Lebanon,” said Aref Itani, a corporate consultant at IG. “Ajal will operate through the Jousour Bank, which is going to be launched by the same three companies at the end of 2007 or early 2008,” said Itani.

Hayek said that this company would develop a tower in Beirut’s Central District to house the headquarters of the new Jousour Bank. Hayek, an engineering and real estate developer, will design and develop the tower, which will cost around $100 million. The tower will be built in agreement with Kuwaiti IG and Kuwait-based ASAS International Real Estate Developments.

Construction is due to begin later this year. “We are currently negotiating with Solidere to acquire 7,300 square meters of land to develop the tower,” said Hayek. The total built-up area of the tower will be 45,000 square meters and it will be 52 meters high. Hayek said that there are around 60,000 Lebanese who are residing in Kuwait.

Ajal which was established in 1998, has a paid-up capital of 18.7 million Kuwaiti dinars ($64.7 million) and focuses on providing consumer finance services.

IG provides financial and investment services according to Islamic principle, including underwriting, portfolio management, and fund management.

Established in 1951, Hayek Group focuses on engineering studies and consultancy, general contracting, financing, facility management, marketing and feasibility studies.

Kuwait-based ASAS has been providing residential, commercial and investment real estate services since 2003 in several countries.