Monetization strategy

The situation

A ministry in a GCC country was seeking to establish a real estate investment company to monetize unutilized assets in its land bank. Strategy& designed the strategy and business plan for the undertaking.

How we helped

The team began by determining the potential challenges and opportunities in the local real estate market. A benchmarking exercise of local and international governmental real estate entities yielded lessons learned, and appropriate strategies and operating models. The team defined the new company’s mandate and role, and described its evolution over time from a pure investor to a full-fledged developer. We also determined a land bank exploitation strategy; long-term value creation levers; and organization structure, manpower plan, and outsourcing strategy.

Results

To guide the company’s setup, we developed the governance, legal, and regulatory structures; 10-year financial projections; and funding requirements and sources. A risk management framework and implementation plan helped the company follow our recommendations.

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