Esdarat Holding Company (Esdarat), with an authorized capital of around $377 million, has launched a private placement of 600 million shares to fund its investment in the largest privately owned real estate development projects in Makkah to date, being developed by Saudi Bin Laden subsidiary – Al-Maqam International Real Estate Limited Company. The private placement, which is expected to raise over $300 million, is a Shariah-compliant investment opportunity which offers investors attractive potential returns. An initial public offering of the company is expected to take place within 12-18 months, subject to regulatory approvals. Commenting on Esdarat's strategy, Issam Essa Al-Asousi, board member of Esdarat, said: “The long-term strategy of Esdarat is to become an active player across all segments of the real estate market in the GCC and the wider MENA region. Given the strong regional economic indicators and expected growth, Esdarat believes that the real estate sector of the GCC, and the Makkah region in particular, is developing at a high annual growth rate per annum.” Eng. Mohammad Al-Shuaib, chief executive officer of Esdarat Holding, said: “The Makkah real estate sector, especially around the Grand Mosque, truly offers one of the most exciting opportunities in the Kingdom of Saudi Arabia, as well as across the entire region. The Rawabi Abraj Al-Bait project that this transaction will in part fund, is unique on many levels, but more so because we are unlikely to see another development project on this scale in Makkah for some time to come. Due to redevelopment of the Haram Mosque, some of the major projects in Makkah have been canceled, which means this project is even more of a rare opportunity.” Shahzad Shahbaz, CEO of NBD Investment Bank, an Emirates NBD company, which is financial advisor and lead placement agent on the deal, said: “This is a rare investment opportunity, which is Shariah-compliant and provides investors with exposure to the Makkah real estate sector. We have had strong initial interest from investors across the Middle East, North Africa and South East Asia, and expect to close the transaction by the end of July. A team of syndicate banks have been appointed. __
