Magma Square (IFC-37642)

Countries
  • Iraq
Geographic location where the impacts of the investment may be experienced.
Specific Location
Sulaymaniyah
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 15, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Malia Invest Holding S.A.L
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 9.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 26.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 22, 2018

Disclosed by Bank May 8, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Malia Invest S.A.L., a company incorporated in Beirut, Lebanon, is planning to develop a greenfield, multi-functional entertainment center of 16,685 sqm being constructed in Sulaymaniyah, Iraq.

The project, Magma Square, is a multi-functional shopping center in Sulaimaniya in the Kurdistan region of Iraq with cost estimated at US$26.6 million. The project is planned on 20,000 m2 of land having built up area of 31,200 m2 with total gross leasable area (GLA) of 17,500 m2 (87% of the total allocated land) and parking lot for 580 cars on 5,500 m2. Landscaping and public circulation covers 7,855 m2. Magma Square will feature multiple food and beverage concepts with reputable brand names on an international and regional scale as well as a selection of retail shops ranging from convenience items to medicine, printing, stationary, accessories, and technology related products. In addition to a movie theatre, the project includes a branded supermarket and a full fledge health and beauty centre. The Project’s Sponsor is Malia Holding (Malia) - a well-diversified Lebanese conglomerate with operations in Lebanon and Iraq. Project Borrower and implementing entity is Malia Invest Holding (Malia Invest or Company) which is a fully owned subsidiary of Malia Holding. The project will be developed by CAPLINE and managed by MAGMALINE (a full-service facility and property management company) both subsidiaries of Malia Group. The project land owner, the American University of Iraq - Sulaimani (AUIS), have gone into a 25 years land occupancy/BOT contract to plan, construct and operate the project. The project site is well-located at the main gate of the American University and facing the main entrance of the Sulaymaniyah University (another large university). The project has a direct access to the main city highway road. The project is in final construction phase, with all civil, electrical and mechanical works completed, and soft opening is set for last quarter of 2018.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Total Project cost is US$26.5 mn, where US$17.5 mn (66% of total Project cost) will be equity contribution by the Group.    IFC is proposed to extend an A loan of up to US$9 mn to the Company to support the Project.   

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Malia Invest is a wholly owned company of Malia Holding. Malia Invest is active in the hospitality sector in Iraq, owning two hotels in Erbil, Iraq and the proposed Project in Sulaymaniyah, Iraq.  Malia Holding, established in 1986 in Beirut, Lebanon, is a diversified conglomerate in Lebanon covering 8 business streams including Industries, FMCG Manufacturing and Distribution, Pharmaceuticals, Technology & Management Solutions, Fashion, Engineering & Contracting, and Hospitality and Real Estate encompassing 27 companies.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Malia Invest Holding S.A.L Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Magmaline 
Thomas Touma 
General Manager 
+961 1 900100 Ext 883 
ThomasTouma@maliagroup.com 
P.O.Box 90201 Jdeidet El Metn, Lebanon 
http://www.maliagroup.com/ 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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