Chestertons enters KSA market with MEDAD

Last updated: Monday, December 29, 2014 11:59 PM

Officials of Chestersons and MEDAD Valuation International
at the Joint Venture sigining ceremony. — Courtesy photo

RIYADH — Chestertons, the international property agency established in 1805, has entered into a joint venture agreement with MEDAD Valuation International to establish operations across Saudi Arabia. MEDAD Valuation International is part of the leading Najeeb Abdullatif Alissa Holding Company (NHC), one of the fastest growing conglomerates in Saudi Arabia with operations across the Kingdom. 

The new JV, ‘Chestertons Saudi Arabia Property Limited’, will commence operations during the second quarter of 2015, and will be opening offices in Riyadh, Jeddah and Al Khobar simultaneously to address the growing needs of its customers in the Kingdom. 

Chestertons will initially provide valuation and consultancy services including portfolio valuations for property companies, banks and financial institutions; corporate valuations for owner-occupiers (accounting purposes/book value); and retail mortgage valuations for bank lending purposes across all asset classes (residential, commercial, offices, industrial, land, mixed-use buildings, hotels and special purpose buildings). It will also provide feasibility studies development consultancy and market research to its local clients.

“Valuations are vital for the industry here as it facilitates transparency and generates the right value based on actual market dynamics. Banks in Saudi Arabia have increased their lending to real-estate end users by 26% in Q4, last year, which is the highest level recorded in the last five years. This also means that there is a definite requirement for professional valuation and consultancy services,” said Khalid Abdul Ghaffar, Senior Vice-President of NHC.

Chestertons will be one of the few companies in Saudi Arabia with the expertise to provide industrial appraisals of primarily plant and machinery, production facilities, stock appraisals (stocks in-trade and transit, inventories) together with power plants and power generating equipment. Chestertons will also be providing appraisal services for vehicles and heavy equipment including automobiles, trucks and trailers, buses and construction equipment for banks, financial institutions and leasing companies.

“Currently, there is a huge gap within the valuations sector in Saudi Arabia. This challenge needs to be immediately addressed as the country plans to invest several billion dollars within the infrastructure and real estate sectors. We were therefore seeking an industry expert to support us and the industry within the ‘valuations’ and ‘consultancy’ space.  We are proud to have selected a partner that can bring its wealth of global industry expertise to Saudi Arabia and we are confident that this JV with Chestertons will enable us to lead the marketplace,” stated Khalid Abdul Ghaffar. 

Chestertons abides by the UK Royal Institute of Chartered Surveyors valuation guidelines and conducts valuations based on a fair market value which are unbiased and based on current market trends and transactions.

“We are entering Saudi Arabia at the right time and we will combine our regional and international strengths with our partner’s local expertise to serve our valued customers in Saudi Arabia. We are also seeing a lot of interest for valuations from local investors with regard to Saudi based properties. Valuations undertaken by a reputed third party independent company aids investors across the Kingdom to understand the market and also, in case of disputes, assist them with support according to the international accounting guidelines. Chestertons is currently supporting 41 leading banks across the region for property appraisals,” said Simon Gray, Managing Director, Chestertons MENA.

In addition to valuation services, Chestertons Saudi Arabia will be working with its extensive network of offices across central London, to service Saudi investors looking to invest into the London residential markets either for their own-use or investment purposes.

“As political uncertainty and social instability continues to cause volatility across the region, governments, businesses, financial institutions, banks and families constantly have to re-evaluate their business strategies and plans. Real estate assets are a major ingredient of business across the Kingdom of Saudi Arabia and a key driver of economic growth. The value of these real-estate assets are constantly changing in the light of all of the above, resulting in the need for up-to-date professional valuation of assets,” concluded Simon.

Chestertons MENA has developed a team of proficient surveyors who specialize in property appraisals. With a network of 30 offices in London and 21 international offices in eleven countries and five continents, Chestertons is rapidly establishing itself as the leading international consultancy partner for property, vehicle and equipment appraisals in the Middle East and Asia. — SG