Makkah & Madinah Holdings' Unique Investment Attributes Highlighted in Keith Bayley Rogers' Report

Nov 17, 2013, 02:00 ET from Keith Bayley Rogers & Co. Limited (KBR)

DUBAI, UAE, November 17, 2013 /PRNewswire/ --

Keith Bayley Rogers & Co. Limited (KBR), a long-established member of the London Stock Exchange, provides bespoke services for public companies, including corporate advice, corporate broker-ships, capital raising and research. KBR today released its report on ISDX-quoted Makkah & Madinah Holdings Limited (MMH).  

MMH is a Sharia'ah compliant, Gulf-based property company with net assets recently valued at US$459 million (£287 million).  Many of the assets in which MMH is interested through its company associate, MMCI, are in the two holy cities of Makkah and Madinah in the Kingdom of Saudi Arabia ("KSA").

KBR's report is based on analysis of MMH and the value of the portfolio of MMCI in KSA. It is underpinned by background research on the property market in KSA's holy cities and on the economic and demographic drivers which are at work there. The report states that MMH's existing portfolio offers a unique opportunity to gain public equity exposure to the rapidly developing property markets of Makkah and Madinah, where land prices in certain quarters are among the highest in the world.  

The KBR report shows MMH's strong asset backing from the investments to which the Company has exposure in real estate and development in the holy cities of KSA. An investment in MMH at its present share price could be an interesting opportunity for both "Frontier" funds and value investors. Through MMH's shares, investors are able to gain equity exposure, which has previously been available only to Saudi nationals; or to citizens of the GCC countries. Neither MMH nor MMCI has any debt; and MMCI has significant net cash. KBR views MMH's balance sheet to be robust.

The report concludes that MMH is significantly undervalued and that its shares stand at an unjustifiably deep discount of over 80% to NAV.

KBR director, Brinsley Holman, said, 'We believe that our report should help to make the broad investment community more aware of MMH and of some of the opportunities which exist in KSA; and of the real estate sector in the two holy cities, which are the primary focus for MMH.'

The 2013 IMF Growth Tracker for World Economic Outlook shows that, in the first quarter of this year KSA's economy was growing above trend and rising.

Contact: Mary Khamasmieh +971-(0)502731753

SOURCE Keith Bayley Rogers & Co. Limited (KBR)