Magma Square (IFC-37642)

Countries
  • Iraq
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
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 15, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Malia Invest Holding S.A.L
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 9.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 22, 2018

Disclosed by Bank May 8, 2018


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Project 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
  • International Finance Corporation (IFC)

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

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.

Contact Information

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/