INTERVIEW WITH TERRY OPIE, MANAGING DIRECTOR OF JV GLOBAL LIMITED (JVG)

“Middle East Expansion Plans”

http://www.brr.com.au/event/51802

FRIDAY, SEPTEMBER 26, 2008, 2:00 PM.

            BRR    Today Boardroom Radio is joined by Mr. Terry Opie, the Managing Director of JV Global. Terry, great to have you on Boardroom Radio.

10        JVG     Thanks very much, Joel. Pleasure to be here.

            BRR    You’ve announced to the market an MOU between JV Global and a major Middle East property developer to build low-cost housing. Many of the details are still subject to commercial in confidence, but perhaps in broad brush

15                    strokes you could highlight some of the key terms for our listeners.

            JVG     Yes, Joel. Under the terms and conditions of the Memorandum of Understanding that’s been released through the ASX today, JV Global will be involved in the establishment and incorporation of a new joint venture company with our Middle East partners to establish the company, to establish

20                    factories, to manufacture a steel framed housing for both labour accommodation and residential accommodation throughout the MENA region.

            BRR    Now, JV Global already has a significant beachhead in the booming Middle East markets, what countries in the area are you looking closely at the

25                    moment and where are you hoping to expand these joint venture operations?

            JVG     Yes, the main emphasis then will be directed within the United Arab Emirates and principally the markets in Dubai and Abu Dhabi. We’re also looking at establishment of a factory in Jordan and possibly Qatar and at a later stage, Saudi Arabia.

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            BRR    Now, as we mentioned, Middle East is a key area of focus for you. You’ve developed some excellent contacts in the region. The eminent joint venture agreements show that those relationships are really starting to bear fruit. How much of an advantage is it for JV Global to have this presence in the region?

35        JVG     I think the significant aspect of what’s occurring now is that having established our first joint venture in the UAE, Arabian Profile Global some two years ago, we’re now finding that we’re starting to reap significant advantages, mainly due to the fact that we actually got a physical presence within the region. I think we’ve learned to understand the way their business

40                    is done. We’ve certainly made some invaluable contacts and this has lead to the establishment of this new joint venture, which we see as a very exciting progression for the company moving forwards.

45        BRR    The demand for steel framed, low-cost housing is extremely robust in the Middle East, how is JV Global placed to take advantage of the opportunities that are presenting themselves in the region?

            JVG     The significant aspect of this, Joel, is that through our joint venture partners, they already have in place the investors and the developers that have many substantial projects already on the drawing boards. Our role in the joint venture will be specifically to supervise the establishment of factories to produce light gauge steel framing structures for the production of principally labour accommodation and residential dwellings for these projects. Most of the projects they’re currently negotiating on very long-term projects. They

5                      could range anything from three to five years. And so, certainly there are going to be some long-term benefits involved in these projects for us. The advantage for us in these projects is that the finance is actually already in place, so specifically our role will be just for the provision of the technology transfer in respect to the establishment of the light gauge steel framing and

10                    then our ongoing role as a project manager.

            BRR    Terry, finally, could you perhaps explain for our listeners how the business model of the JV company would operate in the region?

            JVG     Principally, with our joint venture partners, as I’ve said previously, they’re very

15                    well established within the MENA region. They’ve been operating in the real estate area for many years, principally within the UAE, Jordan, Qatar, Oman, and Saudi Arabia. And they have, within their portfolio, a large amount of wealthy investors who have a considerable amount of developments that need to be progressed, and this will provide the opportunities for us to work

20                    with them in the establishment of the labour accommodation and residential units that’s required within the developments. They will actually bring the parties together for us, and we will be in a position where we have the projects brought to us with the developers already with the projects in place with the finance there to fund the operations, and our responsibility will be to

25                    involve in the building and construction of the various residential developments and labour accommodation.

            BRR    Terry, it’s a very exciting time for the company. We look forward to catching up again and perhaps talking about some further details of the MOU down the

30                    track. Thank you for time today and thanks for talking to Boardroom Radio.

            JVG     Thanks very much, Joel.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

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