Corinthia considering €100 million IPO for Palm Waterfront project

Mediterranean Investments Holding plc, whose parent companies are the Maltese hotel chain Corinthia Group and Kuwaiti company National Real Estate, is considering a €100 million share sale in London to fund its homebuilding project in Libya.

The company purchased land in the northwestern town of Janzour where it plans to build 257 homes, a marina, six cinemas and a retail and entertainment complex early next year, managing director Reuben Xuereb told Bloomberg in a phone interview.

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.

MIH may sell a 20 percent to 25 percent stake of the company in an IPO on the London Stock Exchange before the end of this year to fund construction, he said. MIH 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.

MIH is now pressing ahead with projects now to stay ahead of competitors, as it expects foreign companies to start entering the Libyan market in the next two or three years.

"We have one completed project and two that are about to start," Xuereb said. "Maybe an IPO in three years' time, when the projects are near completion, would make more sense" in terms of value.

"However, we want to start today before anybody else, and the equity that we will bring in will see us ahead of competition."

MIH owns an upscale development with 413 homes in Janzour near the capital Tripoli. Palm City, the serviced compound leased to employees of international companies, is fully occupied.

MIH was set up in 2006 and converted to a public company focused on real estate projects in North Africa, according to its website. The company in 2010 raised €40 million in a bond sale in Malta, most of it to fund the construction of a project in the center of Tripoli.

The 42-story building, 25 percent owned by MIH, is under construction. It's designed to include 253 apartments, 22,400 square metres (241,000 square feet) of office space, 14,800 square meters of retail space conference facilities and a spa, Xuereb said.

"We understand what the market needs and that helps us," he said. "There is a huge demand for offices and for residences and our ability to be on the ground is something that gives us an edge."