GFH, KFIC open up Bayan

15 July 2005
Gulf Finance House(GFH) and Kuwait Finance & Investment Company (KFIC)announced on 4 July the launch of the KD 80 million ($276 million) subscription into Bayan Holding Company, the project company set up to develop the Royal Metropolis project in Jordan.

Subscriptions in the 804 million shares available to investors will be offered through a capital increase of Bayan at KD 0.11 ($0.38) a share, with a minimum investment limit of 100,000 shares. GFH and KFIC - the scheme's promoters - will both invest up to KD 5 million ($17.2 million) in the issue, which is expected to close in mid-July. Post placement, each will hold a 6.18 per cent stake in Bayan, with the balance held by investors. Bayan is expected to be listed on the Kuwait Stock Exchange (KSE) in 2007, once the mandatory incorporation period has passed.

The Royal Metropolis is an estimated $1,000 million development being implemented in two phases. The first, called Jordan Gate, involves the construction of two high-rise towers connected by a multi-storey podium. Sharjah-based Al-Hamad Contracting Companyhas already started construction work on the development.

The second phase - Royal Village - will see the construction of a residential complex, a hotel, a recreation centre and a shopping mall over 470,000 square metres. The proposed facilities will be built at Marj al-Hammam on the Amman-Dead Sea highway.

Bayan will develop the projects through two Jordanian private shareholding companies - Jordan Gate Companyand Royal Village Company. Bayan will take a 100 per cent stake in the latter while the company will take an 89.6 per cent in the former, with the Greater Amman Municipality holding the remainder (MEED 27:5:05).

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