Tasweek builds its way to the top in Asia

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Tasweek’s CEO Masood Al Awar

Tasweek Real Estate Development and Marketing commenced its operations under the auspices of Masood Al Awar as CEO in 2009. A highly effective marketing strategy developed by Tasweek has put the organisation at the forefront of real estate development in the UAE.

Tasweek has approximately 50 shareholders that include members of the Abu Dhabi royal family. Other shareholders are predominantly successful businessmen. Tasweek began operations with a capital injection of $82 million that was raised from all shareholders. Despite rising concerns of a global financial crisis, financial regulators issued Tasweek with all licenses required to commence its operations. Tasweek’s board members supported the moves despite the global financial crisis, and the company opened its doors for business in August 2009. Tasweek’s business objectives have been identified and developed around a three year time-frame that are adaptable to the volatile economic environment.

The core values that define Tasweek were developed around the fundamental issues that prompted the near collapse of international commerce triggered by the US property bubble. As the issues around the global financial crisis slowly unravelled, it became quite evident that financial integrity, professionalism, and accountability were key components that have been overlooked by industry participants, in lieu of risks associated with short term, high-yield investment plays. The strategy of advocating transparency has put Tasweek on the world map, as the company is now considered to be one of the most prominent and trusted real estate players in the GCC.

Tasweek was fortunate enough to develop successful operations from the day it was launched. The organisation demonstrated its strong fundamentals by declaring operational profits in year one. The company has an excellent business model that puts it ahead of the game by predicting potential gyrations to the real estate market.

Masood Al Awar’s mandate was to ensure that Tasweek’s business activities were financed from the operational cash flow rather than corporate loans or other third-party financing.

During its earlier years, Tasweek was considered to be the ‘new king on the block’ due to its financial liquidity, while the rest of the sector was reeling back from the aftermath of the global financial crisis. The crisis turned out to be a game changing event for Tasweek as it redrew the real estate landscape at a crucial time when the company entered the market. The organisation deployed three key strategies to facilitate its business endeavours. Tasweek provides mezzanine financing, is very active in undervalued asset acquisitions, is always on the lookout for solid developers requiring partnerships and, lastly, is always actively seeking to strengthen its business value chain.

Companies that collaborate with Tasweek come from the UAE and other parts of the world, bringing with them niche expertise to the GCC. Currently, Tasweek has a joint-venture partnership between UK-based Brayan Polyteck, a facilities management company. MERJS is another British company working hand in hand with Tasweek as an asset and property management provider with real estate interests along the ‘New Bond Street’ in London.

Konark Resources with projects in the UAE and India is one of Tasweek’s other partners in both these regions. This partnership was designed around Tasweek’s core competency areas which are peer-to-peer networking and the transfer of technical expertise. This allows Tasweek to minimise its costs and achieve higher returns as it can concentrate on what it does best.

For the third year running in succession, Tasweek has declared operational profitability and is on course for sustained growth. The yield potential of mezzanine financing has allowed Tasweek to see strong growth in the short term. Recently, Tasweek made an acquisition of a very strategically located property in the UAE as well. This level of success has opened the floodgates for Tasweek as the organisation has set its eyes on becoming Asia’s ‘crown-jewel’ in the sector.

Another contributing factor to Tasweek’s expansion into Asia is the current unfavourable financing climate in the UAE. Between 2009 and 2011, financing guarantees proposed by Arab banks did not augur well for businesses as lending interest rates in the UAE were markedly higher in comparison to banking institutions in Malaysia. For example, bankers would offer limited term financing packages or very small loan amounts only in return for a succession of guarantees from the loan-requesting entity.

Before venturing into Southeast Asia, Tasweek underwent many rounds of due diligence. Risk assessment is a top priority for the organisation and officially stipulates that all financing objectives and hurdles be evaluated before pursuance of any course of action. 40 per cent of the Tasweek investment portfolio is dedicated to the UAE, and another 25 to 30 per cent is focused on Malaysia.

Malaysia has scored very high within Tasweeks due diligence, and, as a result, major investments have been made in the country. Malaysia has attributes that make it a very attractive destination for GCC investors. The country has a plethora of financing options and is home to the most sophisticated and dynamic Islamic finance market in the world. Sectorial demand within Malaysia is consistent and exponential. Material, logistical, and construction costs are at manageable levels as well. Malaysian real estate characteristics are ideal for development, and regulators for this sector are prudent with their policies and framework.

Tasweek, on the other hand, brings private equity, developer and marketing skills, facilities, and project management experience along with its vested interests in Malaysia. A large percentage of Tasweeks investment portfolio is now dedicated to Malaysian development projects. For example, the town of Ipoh in Malaysia is home to Tasweeks collaborative project with local property developer SuperBoom. The project ‘The Haven Development’, as it is known, demonstrates Tasweek’s commitment to urban development by contributing to the local economy and providing job and business opportunities to residents. The Haven Development is one of the most successful landmark projects that have ever been facilitated by a GCC real estate developer in Malaysia. The net worth of the project is estimated at $100 million. With the success of Tasweek in Ipoh, the company is on course to become the face of UAE real estate innovation and development in Malaysia. In 2009, Tasweek also ventured into Thailand with estimated $60 million in the pocket geared towards investments in the tourism and hospitality sector.

Tasweek so far bypassed Singapore as a potential investment destination, but is evaluating certain Real Estate Investment Trust (REIT) opportunities in the city state, but projects in Malaysia took precedence and hence Singaporean endeavours were put on hold.

Masood Al Awar believes that Malaysian projects will pave the way for Tasweek’s establishment as a major real estate developer in Asia with a track record of innovation and continued success. Malaysia will provide Tasweek with the world stage necessary to showcase its architectural innovation and technical expertise in multiple areas of the real estate business. The availability of sukuk instruments to raise capital and the sophistication of the Islamic financial market in Malaysia will further elevate Arab investors’ interests in Malaysia. All these factors contribute to the successful expansion of Tasweek’s operations across Asian emerging markets.

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Reading Time: 4 minutes

 

Reading Time: 4 minutes

 

Tasweek’s CEO Masood Al Awar

Tasweek Real Estate Development and Marketing commenced its operations under the auspices of Masood Al Awar as CEO in 2009. A highly effective marketing strategy developed by Tasweek has put the organisation at the forefront of real estate development in the UAE.

Tasweek has approximately 50 shareholders that include members of the Abu Dhabi royal family. Other shareholders are predominantly successful businessmen. Tasweek began operations with a capital injection of $82 million that was raised from all shareholders. Despite rising concerns of a global financial crisis, financial regulators issued Tasweek with all licenses required to commence its operations. Tasweek’s board members supported the moves despite the global financial crisis, and the company opened its doors for business in August 2009. Tasweek’s business objectives have been identified and developed around a three year time-frame that are adaptable to the volatile economic environment.

The core values that define Tasweek were developed around the fundamental issues that prompted the near collapse of international commerce triggered by the US property bubble. As the issues around the global financial crisis slowly unravelled, it became quite evident that financial integrity, professionalism, and accountability were key components that have been overlooked by industry participants, in lieu of risks associated with short term, high-yield investment plays. The strategy of advocating transparency has put Tasweek on the world map, as the company is now considered to be one of the most prominent and trusted real estate players in the GCC.

Tasweek was fortunate enough to develop successful operations from the day it was launched. The organisation demonstrated its strong fundamentals by declaring operational profits in year one. The company has an excellent business model that puts it ahead of the game by predicting potential gyrations to the real estate market.

Masood Al Awar’s mandate was to ensure that Tasweek’s business activities were financed from the operational cash flow rather than corporate loans or other third-party financing.

During its earlier years, Tasweek was considered to be the ‘new king on the block’ due to its financial liquidity, while the rest of the sector was reeling back from the aftermath of the global financial crisis. The crisis turned out to be a game changing event for Tasweek as it redrew the real estate landscape at a crucial time when the company entered the market. The organisation deployed three key strategies to facilitate its business endeavours. Tasweek provides mezzanine financing, is very active in undervalued asset acquisitions, is always on the lookout for solid developers requiring partnerships and, lastly, is always actively seeking to strengthen its business value chain.

Companies that collaborate with Tasweek come from the UAE and other parts of the world, bringing with them niche expertise to the GCC. Currently, Tasweek has a joint-venture partnership between UK-based Brayan Polyteck, a facilities management company. MERJS is another British company working hand in hand with Tasweek as an asset and property management provider with real estate interests along the ‘New Bond Street’ in London.

Konark Resources with projects in the UAE and India is one of Tasweek’s other partners in both these regions. This partnership was designed around Tasweek’s core competency areas which are peer-to-peer networking and the transfer of technical expertise. This allows Tasweek to minimise its costs and achieve higher returns as it can concentrate on what it does best.

For the third year running in succession, Tasweek has declared operational profitability and is on course for sustained growth. The yield potential of mezzanine financing has allowed Tasweek to see strong growth in the short term. Recently, Tasweek made an acquisition of a very strategically located property in the UAE as well. This level of success has opened the floodgates for Tasweek as the organisation has set its eyes on becoming Asia’s ‘crown-jewel’ in the sector.

Another contributing factor to Tasweek’s expansion into Asia is the current unfavourable financing climate in the UAE. Between 2009 and 2011, financing guarantees proposed by Arab banks did not augur well for businesses as lending interest rates in the UAE were markedly higher in comparison to banking institutions in Malaysia. For example, bankers would offer limited term financing packages or very small loan amounts only in return for a succession of guarantees from the loan-requesting entity.

Before venturing into Southeast Asia, Tasweek underwent many rounds of due diligence. Risk assessment is a top priority for the organisation and officially stipulates that all financing objectives and hurdles be evaluated before pursuance of any course of action. 40 per cent of the Tasweek investment portfolio is dedicated to the UAE, and another 25 to 30 per cent is focused on Malaysia.

Malaysia has scored very high within Tasweeks due diligence, and, as a result, major investments have been made in the country. Malaysia has attributes that make it a very attractive destination for GCC investors. The country has a plethora of financing options and is home to the most sophisticated and dynamic Islamic finance market in the world. Sectorial demand within Malaysia is consistent and exponential. Material, logistical, and construction costs are at manageable levels as well. Malaysian real estate characteristics are ideal for development, and regulators for this sector are prudent with their policies and framework.

Tasweek, on the other hand, brings private equity, developer and marketing skills, facilities, and project management experience along with its vested interests in Malaysia. A large percentage of Tasweeks investment portfolio is now dedicated to Malaysian development projects. For example, the town of Ipoh in Malaysia is home to Tasweeks collaborative project with local property developer SuperBoom. The project ‘The Haven Development’, as it is known, demonstrates Tasweek’s commitment to urban development by contributing to the local economy and providing job and business opportunities to residents. The Haven Development is one of the most successful landmark projects that have ever been facilitated by a GCC real estate developer in Malaysia. The net worth of the project is estimated at $100 million. With the success of Tasweek in Ipoh, the company is on course to become the face of UAE real estate innovation and development in Malaysia. In 2009, Tasweek also ventured into Thailand with estimated $60 million in the pocket geared towards investments in the tourism and hospitality sector.

Tasweek so far bypassed Singapore as a potential investment destination, but is evaluating certain Real Estate Investment Trust (REIT) opportunities in the city state, but projects in Malaysia took precedence and hence Singaporean endeavours were put on hold.

Masood Al Awar believes that Malaysian projects will pave the way for Tasweek’s establishment as a major real estate developer in Asia with a track record of innovation and continued success. Malaysia will provide Tasweek with the world stage necessary to showcase its architectural innovation and technical expertise in multiple areas of the real estate business. The availability of sukuk instruments to raise capital and the sophistication of the Islamic financial market in Malaysia will further elevate Arab investors’ interests in Malaysia. All these factors contribute to the successful expansion of Tasweek’s operations across Asian emerging markets.

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