NewGenIVF Converts Ras Al Khaimah Project Structure, Expected Profit Increases to $123 Million

NewGenIVF announced its intention to exercise an option under its joint venture agreement, JVA, with BNW Real Estate Development to convert the Ras Al Khaimah development project from a Joint Venture structure into a Joint Development structure, while maintaining the existing shareholding of the special purpose vehicle, SPV. This strategic conversion is expected to enhance NewGen's profit entitlement in the flagship Ras Al Khaimah Beach District luxury project. Under the Joint Development structure, NewGenProperty Limited, a wholly owned subsidiary of NewGen, shall fully contribute all project finances and will be entitled to 64% of the net profits from the project, potentially increasing the Company's projected pre-tax profit from US$67 million to US$123 million. Under the relevant clause of the JVA, NewGenProperty Limited, as the Landowner, will assume full responsibility for project financing, including the plot purchase price, development costs, pre-sales expenses, and financial escrow requirements, with any remaining land balance funded through its own resources. BNW, as the Developer, will continue to provide development management services. Following the conversion to the new structure, net profit allocation will shift to 64% for NewGenProperty Limited and 36% for BNW, after deduction of all SPV-related expenses, taxes, and costs.