Tadhamon Capital acquires professional labour accommodation in Jubail
Bahrain-based Islamic investment company Tadhamon Capital today announced its successful acquisition of Consolidated Services Company (‘CSC’). CSC currently owns and operates accommodation for management and staff in Jubail Industrial City and other industrial areas in the Kingdom of Saudi Arabia. The transaction is valued at more than USD 22 million and generates very attractive cash returns to the investors.
Mr. Waleed Abdulla Rashdan, CEO of Tadhamon Capital expressed his satisfaction with the acquisition and stated that "Despite the turbulent conditions experienced by the real estate market, our team continues to identify superior investments based on their solid understanding of the market and extensive experience in the field of real estate and private equity."
CSC offers services unlike those found in standard labour accommodation, the units provide cater to the needs of the various labour classes active in the field, up to and including senior management and project engineers of various nationalities. The site lies on a 51,000 sq. m. plot of land, currently capable of housing 800 residents. However, current expansion on the site will increase occupancy to 1,500 by the middle of 2010. Services provided include daily housekeeping, laundry services, and meal plans. Other facilities include swimming pools, a golf range, gymnasium, sports room, multipurpose courts, internet cafe, as well as social gathering areas.
Jubail has been designated as an Industrial City by the Saudi Arabian Government and over the last ten years has witnessed rapid expansion and industrialization. The Industrial City is a complex of local and international petrochemical plants, and houses a number of companies including the Middle East’s largest and the world’s 4th largest petrochemical company SABIC, and the recently announced Saudi Arabia Total Refining and Petrochemical (SATORP) company. New industrial projects in Jubail are increasing the demand for housing units in the area. It is forecasted that Jubail Industrial City’s population will reach around 250,000 by 2020 from the current level of 160,000.
Mr. Hesham AlGassab, Director of Real Estate Investments added "We look forward to expanding CSC’s activities by introducing similar projects catered towards various market segments within Saudi Arabia and across the GCC region. Our expansion model shall cater to the growing number of major infrastructure and strategic projects spearheaded by both the private sector and governments within the GCC".