25/09/2007 - 15:14

JVGlobal plans to enter Jordan housing market with MOU

25/09/2007 - 15:14

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Perth-based steel building products company JVGlobal Ltd has signed a deal with Jordanian company Tuhama Investments to provide framework for a display home, as part of an attempt to break into Jordan's housing market.

JVGlobal plans to enter Jordan housing market with MOU

Perth-based steel building products company JVGlobal Ltd has signed a deal with Jordanian company Tuhama Investments to provide framework for a display home, as part of an attempt to break into Jordan's housing market.

JVGlobal plans to use the display home, to be fitted out by Tuhama, to gain government building approvals and gauge market acceptance for the new housing style.

The company aims to satisfy what it says is an acute shortage of affordable housing in Jordan.

JV Global will send a delegation from its Competent Homes subsidiary to supervise construction.

 

 

The full text of a JV Global announcement is pasted below

Further to our previous ASX announcement dated the 2nd May, 2007 JV Global Limited is pleased to advise that an amended MOU has been signed in Amman, Jordan between Tuhama Investments and JV Global Limited.

The MOU was signed by Mohammed Dahleh, Managing Director of Tuhama Investments, a Public Company listed on the Amman Stock Exchange and Terry Opie, Managing Director of JV Global Limited in the presence of Victoria Young, First Secretary, Australian Embassy, Department of Foreign Affairs and Trade, Amman, Jordan and Hania
Ghannoum, Business Development Manager, Australian Trade Commission, Amman, Jordan.

The amended MOU has been executed by Tuhama Investments with all terms and conditions in accordance with the previously signed MOU executed by Qabas Financial Investments which is a wholly owned subsidiary of Tuhama Investments.

Under the terms and conditions of the MOU, JV Global Limited is to supply and erect a sample residential steel framed house in accordance with the design provided by Tuhama Investments who will then arrange for the external/internal cladding/walls, roofing and internal fit out. The completed display home will be utilised to gain the
necessary building approvals from the relevant building authorities in Jordan and to gauge market acceptance for this new method of construction for residential housing in Jordan.

There is an acute shortage of "affordable housing" in Jordan with an anticipated demand of 100,000 homes over the next five years. With escalating land costs including the costs involved in supplying roads, water, electricity and sewerage coupled with higher material and labour costs the average Jordanian can no longer afford a "traditionally built" Jordanian home.

Both Tuhama Investments and JV Global Limited see the introduction of architecturally designed, energy efficient and environmentally friendly steel framed residential housing as one of the solutions in meeting the requirement for "affordable housing" in the Jordanian market.

Arrangements for the delivery of the steel framed house are now being finalised and it is anticipated the components will be delivered in Amman by the end of this month. JV Global Limited will then send a team from their wholly owned subsidiary, Component Homes, who will then supervise the erection of the dwelling.

On a recent visit to Australia, Trevor Peacock, Australian Ambassador to Jordan visited Component Homes to inspect our factory including the manufacturing and fabrication process that will be utilized in setting up a facility in Jordan in accordance with final negotiations to be conducted over the coming months.

"JV Global Limited has taken solid steps towards accessing significant opportunities in the Jordanian building and construction sector with the signing of the MoU with Tuhama Investments", said Ambassador Peacock during his visit.

"Tuhama Investment's links to major projects will greatly assist JV Global's market entry strategy. The introduction of building technologies that can offer fast and affordable housing addresses current needs within the Jordanian market", added Ambassador Peacock.

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