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RAS AL KHAIMAH, UAE - NewGenIvf Group Limited (NASDAQ:NIVF), a $2.46 million market cap company with $5.43 million in trailing twelve-month revenue, announced Monday that its subsidiary NewGenDigital has signed a memorandum of understanding with BNW Real Estate Development LLC to develop a plot of land in Ras Al Khaimah’s Beach District.
Under the proposed joint venture, BNW will be responsible for all construction and management costs, while NewGenDigital will contribute 36% of the initial land cost, approximately $24 million. BNW will fund the remaining 64% of the land cost upfront. According to InvestingPro data, this investment comes as the company faces challenges with cash burn and maintaining profitability, with negative EBITDA of $1.14 million in the last twelve months.
According to a feasibility study prepared by BNW, the project could generate a net return of up to $67 million for NewGenDigital after deducting costs, representing a potential 272% return on investment. The projection assumes a sale price of AED3,000 (approximately $817) per square foot and a saleable area of 527,753 square feet.
BNW, which currently manages a real estate portfolio of about $520 million and is developing six residential properties in Ras Al Khaimah and Dubai, will oversee project execution, management, sales, and marketing for the development.
"This collaboration represents a significant milestone in NewGenDigital’s expansion strategy, allowing our subsidiary to develop its prime land acquisition while minimizing its initial capital outlay," said Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, in the press release.
The parties will now work toward negotiating and executing a definitive joint venture agreement to form a special-purpose vehicle for the development project.
NewGenIvf Group’s primary business is providing fertility services through clinics in Thailand, Cambodia, and Kyrgyzstan. InvestingPro analysis reveals the company’s overall financial health score is weak at 1.25, with 14 additional key insights available to subscribers, including detailed profitability metrics and growth projections.
In other recent news, NewGenIvf Group Limited has announced several significant developments. The company approved a reverse stock split at a one-for-five ratio, aiming to meet Nasdaq’s minimum bid price requirement. This adjustment will reduce the number of outstanding Class A ordinary shares significantly. Additionally, NewGenIvf is exploring a major $400 million real estate tokenization project in the UAE, linked to a strategic beachfront property acquisition. This initiative is part of a broader $45 million investment plan in the UAE real estate market, particularly near the upcoming Wynn Al Marjan Island resort. The company is also making strides in the digital asset space with a $30 million investment in Solana, expanding its blockchain sector involvement. NewGenIvf’s management has expressed confidence in the long-term potential of blockchain assets. Furthermore, the company’s real estate endeavors include plans to diversify its portfolio with properties in Abu Dhabi and partnerships with UAE developers. These developments highlight NewGenIvf’s strategic efforts to diversify and expand its business operations.
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