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Mesopotamia Real-Estate Project


Project No: #19331
Capital needed
USD 21,900,000
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Minimum investment per investor: 2000000
Country: Iraq
State: Baghdād
Reason for needing Capital: Buying Properties
Stage: Profitable
Ideal Investor Role: Equity partner
Highlights: 1 - Acquisition of occupied commercial buildings in Baghdad
2 - Buildings start at $1.4M with $21.9M for all 9 buildings
3 - The project will provide net revenue after 12 months
4 - First year ROI ratios for the buildings range from 3.32% to 14.4%
5 - Longer term nature of the partnership to be agreed at a later stage
What you offer to investors?: A new UK investment company will be set up with registered capital of $21.9M less setup costs with 50% equity to each partner. 12 months will be allowed to acquire one or more of the 9 target buildings. Afterwards, the profits from the new company will be divided equally between the partners.
Business plan:

Abstract
We have identified nine occupied commercial buildings in Baghdad which are offered for sale, starting at $USD1.4Million, and with a combined purchase price of  $USD 21.9Million. We are looking for an investor with  a minimum of $USD2Million to acquire a 50% equity share in a UK private Joint Venture Company (JVC). The JVC will purchase one or more of the Baghdad buildings.  This will bring in revenue from rental income in the first year, which will be divided  according to the equity share percentage.

Short Summary
This project will be located and managed between the UK (London) and Iraq (Sulaymaniyah and Baghdad) through UK and Iraqi companies & organizations with  headquarters in London and Sulaymaniyah.  The nine commercial buildings identified are all located in Baghdad.  Eight of the nine commercial buildings have been fully occupied for a number of years and return a steady revenue from rental income which result in first year ROI ratios of 3.32% to 14.4% .  The ninth building in Baghdad is new and unoccupied which creates  excellent opportunities to negotiate favourable leases with new tenants.

The Business
This project will be located and managed between the UK and Iraq through the following existing organizations:
Telematique Limited – a private limited company incorporated on 12-May-2008 and registered in England & Wales #6589934 with VAT registration number #933626027
Telematique Co. for General Trading – a private limited company incorporated on 20-Sep-2012 and registered in the Kurdistan Region of Iraq with number #4312.
Iraq Project Management Organization (IPMO) – A Non-Governmental Organization (NGO) licensed by the NGO Office of the Council of Ministers of Iraqi Kurdistan Region on 4-Jun-2014 with number #604-K 

The Market
The commercial property market in Baghdad has remained stable since the days of Saddam Hussain and survived the upheavals that  accompanied the American led invasion of Iraq in 2003 , the  American withdrawal in 2011 then the war against ISIS  which was decisively won in 2017.  Today, with the Kurdistan independence referendum firmly in the past and a stable federal government in Baghdad, security has returned and foreign investment is flowing in again. Many observers predict that the price of commercial properties in Baghdad is set to increase substantially over the next few years.

Progress/Proof
The table in Exhibit 1 and the map of Baghdad in Exhibit 2  provide all the essential facts that an Investor would need in order to make an initial judgement as to whether is project is of interest to them.  It is important to make clear that the first building Building #1 is owned by the author so all documents, figures and calculations for that building are available to be  examined and verified  a serious Investor.   The figures for the other 8 buildings, however, have been provided by Real-Estate Agents in the areas targeted.  It is therefore necessary to instruct independent experts to perform due-diligence audits  on each building before an offer-to-buy is made.

Objectives/Future
The table in Exhibit 1 and the map of Baghdad in Exhibit 2  (in the Business Plan) provide all the essential facts that an Investor would need in order to decide whether to this project is for him/her.  The nature of the long term relationship between the partners can be left to a later stage in the process.

The Deal – Joint Venture Company
The funds provided by the Investor shall be used to establish a new investment company in the United Kingdom with a registered capital of the entire fund less the  set up costs.  The share of dividend is at 50% to each partner. The new company will be allowed an initial period of 12 months to acquire one or more of the 9 target buildings.   After 12 months, the profits from the new company will be divided between the partners according to the equity share (or 50% each.)

The Financials
# Building Name or Address Building Name or Adress Area (square meters)/ المساحة (متر مربع) Price per Square meter ($USD)/ سعر المتر المربع Total Sale Price ($USD)/ سعر العمارة Current Annual Rent ($USD) / Current Annual Rent ($USD) per Square Meter Year 1 Return On Investment (ROI) (Percentage) 
1 Mansur Brides Mansur - Ruwad  Street 304.49 $6,000.00 $1,826,940.00 $88,270.00 $289.89 4.83%
2 Saidiya 3-Floor Building 500m2 Main Saidiya Street - 1 500 $5,000.00 $2,500,000.00 $360,000.00 $720.00 14.40%
3 Saidiya 3-Floor Building 400m2 Main Saidiya Street - 2 400 $5,208.33 $2,083,333.33 $120,000.00 $300.00 5.76%
4 Beirut Square 3-Floor Building 500m2 Palestine Street - Beirut Square 500 $3,000.00 $1,500,000.00 $100,000.00 $200.00 6.67%
5 Palestine Street 3-Floor Building 500m2 Palestine Street - After Bridge to Mustansyeiyah 500 $5,416.67 $2,708,333.33 $90,000.00 $180.00 3.32%
6 Saidiya 4-Floor Building 400m2 Saidiya - Main Commercial Street 400 $5,625.00 $2,250,000.00 $130,000.00 $325.00 5.78%
7 Saidiya 5-Floor Building 500m2 Saidiya - Commercial Street 500 $8,333.33 $4,166,666.67 $180,000.00 $360.00 4.32%
8 Saidiya 4-Floor Building 398m2 Saidiya - Main Street 398 $3,454.77 $1,375,000.00 $95,000.00 $238.69 6.91%
$18,410,273.33 $1,163,270.00 $326.70 6.32%
9 Saidiya 5-Floor Building 600m2 Saidiya - Main Street 600 $5,833.33 $3,500,000.00 $196,019.10 $326.70 5.60%
$21,910,273.33




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