1. Overview of the product – The contract the product based on:-3
2. ISLAMIC HEALTHCARE REAL ESTATE INVESTMENT FUND. 5
2.1. Shari’a Board Fee. 5
2.2. Management Fee. 5
2.3. GENERAL INFO. 6
3. Overview. 6
3.1. FORM OF INSTRUMENT. 7
3.2. SHARI’A GUIDELINES. 8
4. Market for the Product and the competition. 10
5. Risk Factors11
5.1. General Operating and Investment Risks11
5.2. Market Volatility and Limited Liquidity. 18
5.3. Accounting, Disclosure and Regulatory Standards19
5.4. Conflicts of Interest19
5.5. Tax Consequences19
5.6. Currency Risk at the Investor Level20
5.7. Real Estate Risks21
6. RISK MANAGEMENT. 24
7. Available Resources25
8. Expected Returns28
1.Overview of the product – The contract the product based on:-
Name of the fund:1- The Real Estate Fund for Medical clinics and Healthcare facilities
3- Real Estate fund for Healthcare services
Concept: Establishing a Real Estate Fund with a total capital of US $100 million which will target buying and developing properties to establish medical service centers then renting these properties to medical institution to benefit from its revenues and add value to its assets.
Targeted Countries: Geographies
- Any other country that would generate the targeted return
- In order of preference.
Subsector Investment – Real Estate Investment with long rent contract and green field developments
– Senior Living
- Old age home
- Nursing home for age old
- Special Economic Zone – Free zone – Biotech Park, Biotech and pharmaceutical special economic zone. IT/ITES and bioinformatics parks.
- Wellness and spa
Target Investors – Retirees,
- Widows and Single women looking for steady income
- Low risk investors
- Pension Fund
- Social Security
- Fund of Funds
- Real Estate Funds
Fund Manager – SAZ Investment Bahrain
Promoters: – SAZ Holding Company
Basic Fund Information:
- Fund Duration
- Registration Fees
- Management Fee
- Hurdle Rate
- Fund Manager Incentive
:US$ 100 Million
: 2% (part of which to the fund manager)
: 8% per annum
: 30% :70% above hurdle rate between fund manager and fund
- Regular quarterly distribution of return 70% of rental income after completion of 18 months. (7.5% per annum distributed quarterly)
- Fund will be traded on stock market at NAV and investor can sell the unit after listing any time.
- Listing within 12 months of fund closing.
- Redemption Fees
:Open ended , traded on stock market
: End of period.
The Fund is organized as a open-ended exempt collective investment undertaking, to make equity and equity-equivalent investments in a diversified portfolio of Shari’a compliant companies (as outlined in the section headed “Investment Policies” in the “INVESTMENT STRATEGY” section below) in a broad range of sectors with high growth potential attributable to increasing per capita income, favorable demographics and consolidation opportunities. The Fund Company has been established as a closed joint stock company incorporated in Bahrain. The investment manager of the Fund, as appointed by the Fund Company (acting as wakil and acting on behalf of the Fund Company) is SAZ Investment House K.S.C.C, a company incorporated in the State of Kuwait (referred to in this Memorandum as “SAZ” or the “Investment Manager”).
The Fund will target an annualized internal rate of return (“IRR”) of 20 per cent. net of all fees paid by the Fund Company, acting on behalf of the Fund, to the Investment Manager and all fees and expenses of the Fund’s auditors, legal counsel and other advisors and all taxes payable by the Fund Company, acting on behalf of the Fund, and its portfolio companies (“Portfolio Companies”). The Fund Company generally will seek to acquire, or to participate in an investor group which acquires a significant equity or equivalent position (which may include minority positions) in its Portfolio Companies. The Fund will target investment in Portfolio Companies where the Investment Manager perceives opportunities to add value through active participation in the Portfolio Company’s operations.