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Global Investment opens Mushaa Real Estate
- July 30, 2008, 2:57 pm
Mushaa will present a series of distinctive real estates in the GCC markets utilizing the concept of Hisas Al-Mushaa.
This will be followed by Mushaa’s expansion and entry into other markets.
Mushaa’s operations and activities will be Sharia’a compliant.
With regards to Mushaa’s excellent opportunities, Mr. Omar El-Quqa, Executive Vice President at Global said:
‘The real estate sector is growing at an unprecedented level in the region, and is expected to continue growing. The real estate sector is also the fastest growing in comparison to other sectors, especially the hospitality segment which is strongly correlated to GDP.’
He further clarified that the opportunity is still there for a considerable demand for Islamic timeshare, a sector which is under-represented in this region.
Mr. El-Quqa stated that Mushaa will launch its real estate using the ‘Hisas Al-Mushaa system’, which is a time share system compliant with the Sharia’a allowing the partial ownership of a real estate property for 20 to 50 years.
When compared to other types of residency such as hotels, Hisas Al-Mushaa have an array of features.
These features include affordability, as well as the ease to change or swap shares.
He added that Global agreed in behalf of Mushaa, with Baz Real Estate Modern Systems Company which has developed Hisas Al-Mushaa concept.
Baz Systems will assist the management of Mushaa in acquiring distinctive real estate properties as well as selling Hisas Al-Mushaa through Baz’s network in the GCC and the region.
He mentioned that Mushaa’s strategic plan for the first five years targets ownership and development of five to seven five star equivalent real estate properties in the GCC.
These properties will be promoted using the Hisas Al-Mushaa system. El-Quqa clarified that the company aims to increase its paid up capital to KD30m through issuing 290 million shares at a nominal value of 100 Fils per share.
It is worth mentioning that Mushaa Real Estate Company was established in July 2006 and intends to list in the Kuwait Stock Exchange (KSE) after fulfilling KSE’s listing requirements.
Mushaa’s operating profits are expected to reach KD3.2m during the first year, and are expected to reach KD27.8m in its fifth year, with a satisfactory operation profit margin of 60%.
Mushaa’s investors are expected to receive an IRR of 27%.
El-Quqa emphasized that timeshare is a highly profitable industry for developers of timeshare properties since their revenue base is derived from a variety of sources, including, selling the timeshare units, consumer financing, and units rentals.
Furthermore, once the timeshare contracts have expired, after 20-50 years, the developers can realize the appreciation in their property values.
Mr. Osama Sabbah, Executive Vice President at Baz said: ‘Hisas Al-Mushaa has become the first choice for individuals and families that want to avoid the high costs of residing at a hotel. It is worth mentioning that Hisas Al-Mushaa has the highest occupancy rates during all seasons, even during times of economic downturns.
He added that studies show that the Middle East can support up to $540m as an average annual revenue from Hisas Al-Mushaa, especially in booming tourist destinations such as Dubai, Sharm El Shiekh, and Bahrain, as well as religious sites such as Makkah and Medina.
With regards to Baz Systems expertise in this field, Mr. Sabbah said: ‘We started working on modern tourism concepts since 1988 through BAZ for Tourism and Shipping. In 2002, Baz began developing these products by presenting the Sukook program in cooperation with Munshaat Real Estate Projects Company, this program was implemented in Zamzam Tower in Mecca. We later developed the time share concept to suit the region’s customs and traditions as well the teachings of the Islamic Sharia’a by creating Hisas Al-Mushaa system.’
It is worth mentioning that Baz presented several projects in the region utilizing Hisas Al-Mushaa concept which include the Copthorne Hotel in Dubai, the C Tower in Bahrain’s luxurious Villa Mar’s project, as well as Manazel Al Ain Hotel in Mecca.
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