POROJECT INITIATIVES (undertaken/underway)

Peninsula Real Estate Fund (PREF): A US$ 100 million Bahrain domiciled closed-end fund recently approved by the Central Bank of Bahrain (formerly known as Bahrain Monetary Agency). The fund is managed by DTZ Corporate Finance, and Siraj Capital acts as the investment advisor. The fund targets corporate real estate divestitures and real estate development opportunities in the GCC and MENA markets. The fund’s strategy is to utilize DTZ’s regional expertise (over 30 years) in identifying and managing a unique portfolio of assets in the region. The fund offers investors geographic and asset diversification with a stable income stream (yield), capital appreciation and low volatility.

Siraj Mullak Holding Company (SMCH): Siraj Capital has entered into a stock purchase agreement with Mullak United Arabian Company (“Mullak”), a newly licensed mortgage provider in the Kingdom of Saudi Arabia. As a strategic investor Siraj Capital will designate a representative to the board of directors of Mullak and will develop a strategic alliance with the company. SMHC is a Cayman Islands investment vehicle established by Siraj Capital in order to allow international and smaller investors access to this unique investment opportunity via acquisition of shares in SMHC which will mirror the shares of Mullak. Set to benefit from its key role in Saudi Arabia’s rapidly expanding housing market which is driven by one of the world’s fastest growing populations and lowest levels of home ownership (22%) Mullak is planning an IPO within two years. SMHC investors will receive shares which are equivalent to Mullak shares and all benefits will pass through to the SMHC shareholders.

MENA Nawader Fund (MNF): A US$ 20 million investment fund domiciled in the Cayman Islands and focused on investing in small to medium private equity deals identified across the MENA region. The focus of the Fund will be to provide capital to fund growth, to take positions in companies ahead of expected or announced regulatory changes and to invest in necessary businesses that underpin the regional boom underway at present. The fund has been structured by Siraj Capital and Intellectual Capital Partners Limited (I-CAP). The fund’s objective is to provide significant capital gain (target IRR is 30%) over the life of the fund which is three to four years, while offering investors the benefits of a portfolio approach together with full-time professional management and expertise in this type of investment activity.

SIRAJ Hospitality & Tourism Fund (SHICO): A US$ 500 million investment company under establishment in coordination with the Saudi Arabian General Investment Authority (SAGIA). Investors will subscribe to a Saudi Arabian limited liability company which will operate as an investment company vehicle. The company will target investments in the hospitality and tourism sectors in Saudi Arabia and the broader MENA region. EMAAR Saudi Arabia is one of the fund’s strategic investors. The fund will specifically target, among others, hospitality investments in the newly established Economic Cities including the King Abdullah Economic City. The fund will offer international and regional investors the opportunity to tap into Saudi Arabia and the region’s growing hospitality and tourism sectors and will seek capital appreciation through internationally managed opportunistic diversification.


Jeddah Central Business District (CBD): Siraj Capital is part of a four company consortium that has been awarded this project by the Jeddah municipality. The project is the first central business district (CBD) redevelopment project to be awarded on a Private-Public Partnership (PPP), and encompasses a 5.9 square km area in the heart of the city of Jeddah, Saudi Arabia’s second largest city. The consortium has been tasked with master planning and re-zoning the designated project area to include waterfront development, land reclamation, urban rejuvenation, historical neighborhood preservation, traffic and transportation planning, and environmental planning. The consortium will establish a special purpose company (SPC) that will, as part of its master development plan, invite existing landlords to exchange their evaluated properties for equity. The SPC will control a minimum of 35% of the land in the designated project area. The initial project value is estimated at SAR 7 billion with first phase completion in five years. The SPC will subsequently seek outside investors through a private placement.

Abha Central Business District (ACBD): Siraj Capital is leading a four company consortium that has been awarded this project by the Abha governorate. The project was approved by His Highness King Abdullah Bin Abdul Aziz during his visit to Abha on November 4th 2006. The project is a 2 square km redevelopment of the central business district of Abha in Asir Province, Saudi Arabia. As the Kingdom’s leading internal tourist destination, Abha will witness significant growth in tourist arrivals over the next few years. The CBD development will be designed to house all government buildings, as well as creating public areas including, public squares, outdoor markets and caf├ęs in order to promote the cultural and social environment. The consortium will establish a special purpose company (SPC) that will act as master developer. The SPC will receive government land grants, special zoning rights, and multi-year lease agreements. The initial project value is estimated at SAR 1.5 billion with first phase completion in three years. The SPC will subsequently seek outside investors through a private placement.

Airport Economic City (AEC): Siraj has been in discussions with the Saudi Arabian General Investment Authority “SAGIA” to build, develop and operate a Special Economic Zone “SEZ” in the Eastern Province of Saudi Arabia. Siraj has entered into an MOU with SAGIA and is developing the final concept for this city. Siraj anticipates that the AEC will be focused on: (i) Air logistics Hub and Support, (ii) Services Supporting the Energy Sector,(iii) Housing / Township (also designed to take advantage of proximity to Bahrain). Siraj will be the lead manager of this project and will joined by several major regional and international partners. Jurong International Consulting Pte. Ltd. (a Singapore based master planning firm), and change International Airport Services (CIAS) have been selected to conduct the feasibility study for presentation to SAGIA and the Civil Aviation. The AEC is one of several special economic zones being established in Saudi Arabia. The cost of the project has not yet been determined but based on similar projects elsewhere in the Kingdom Siraj estimates the project to be valued at US$ 8-10 billion, pending the outcome of the feasibility.