Bloomberg reports that Malta-based developer Mediterranean Investments Holding is considering a 100 million-euro ($132 million) share sale in London to fund home-building in Libya.
The company, set up in 2006 as a joint venture between the Corinthia Group of Malta and the National Real Estate Company of Kuwait, has purchased land in the northwestern town of Janzur and plans to build 257 homes, a marina, six cinemas and a retail and entertainment complex early next year.
Managing Director, Reuben Xuereb, told Bloomberg:
“[Libya] has tremendous opportunities and huge potential for growth in various sectors of the economy, be it energy, infrastructure or real estate development … Needless to say, some people are still worried about whether this is the right time to go.
“We have one completed project and two that are about to start … Maybe an IPO in three years’ time, when the projects are near completion, would make more sense … However, we want to start today before anybody else, and the equity that we will bring in will see us ahead of competition.“
MIH hopes to stay ahead of competitors, and expects foreign companies to start entering the Libyan market in the next two or three years.
It already owns an upscale development with 413 homes in Janzur near the capital Tripoli. Palm City (pictured), a serviced compound leased to employees of international companies, is reported to be fully occupied.
The new project, known as Palm Waterfront, will be sold to Libyans once it’s completed. The development would be operated and serviced by MIH and would include amenities such as pools, gyms, restaurants and shops.
Xuereb said the company may sell a 20-25 percent stake in an IPO on the London Stock Exchange before the end of this year to fund construction. It has searched for a single investor for the entire development for the last several months, according to Xuereb. The company hired Dubai-based H.K. Advisory Services Ltd. to advise on the fundraising.