NewGen Announces Planned US$45 Million Strategic Investment in UAE Real Estate Market

Rhea-AI Summary

NewGen (NASDAQ: NIVF), an Asian fertility services provider, has announced a planned US$45 million strategic investment in UAE real estate, primarily targeting properties near the upcoming Wynn Al Marjan Island resort in Ras Al Khaimah. The company aims to diversify beyond its IVF business by acquiring properties for future resale. NewGen has engaged UAE expert Samira Aissani to lead property acquisitions and partnered with Enclave Capital LLC to raise an additional US$45 million for expansion. The investment focuses on Ras Al Khaimah's growth potential, driven by its strategic location, favorable investment policies, and the multi-billion dollar Wynn resort opening in 2027. The company also plans to invest in Abu Dhabi's real estate market to diversify its portfolio further.

Positive

• Strategic US$45 million investment in UAE real estate market with potential for significant appreciation
• Partnership with experienced UAE-based business development manager Samira Aissani
• Planned additional US$45 million capital raise through Enclave Capital LLC
• Investment targets high-growth areas near the upcoming Wynn Al Marjan Island resort
• Diversification of business beyond traditional IVF operations
• Favorable UAE investment conditions including 0-9% corporate tax rates and 100% foreign ownership

Negative

• Significant deviation from core fertility services business model
• Substantial capital requirements with additional US$45 million needed to be raised
• Execution risks in new geographic market and industry segment
• Dependence on future property appreciation for returns

Insights

Investment Strategist

NewGen's $45M UAE real estate diversification represents significant strategic pivot from core fertility business, with both opportunity and execution risks.

NewGen's announced $45 million UAE real estate investment marks a substantial strategic shift for a company primarily known as an Asian fertility services provider. This diversification moves them far from their core competency into a completely unrelated sector and geography. The company is targeting properties near the upcoming Wynn Al Marjan Island resort in Ras Al Khaimah, with plans to acquire properties for future resale.

The investment thesis rests on Ras Al Khaimah's growth potential, driven by the multi-billion dollar Wynn integrated resort opening in 2027. The company cites favorable market conditions including foreign ownership policies, low corporate tax rates (0-9%), and the region's strategic location within four hours of 31% of the global population. NewGen is also considering property investments in Abu Dhabi for further diversification.

To execute this strategy, NewGen has engaged UAE real estate expert Samira Aissani and established partnerships with local developers. The company has also executed a term sheet with Enclave Capital to raise an additional $45 million for expanding their real estate portfolio.

This move raises significant questions about NewGen's strategic direction. While diversification can reduce risk, this represents a dramatic departure from their medical services expertise. The real estate investment requires specialized knowledge of UAE markets and property development cycles that differs fundamentally from fertility clinic operations. Investors should carefully evaluate management's ability to successfully operate across such disparate business lines, the rationale behind this substantial strategic pivot, and how it aligns with the company's long-term vision beyond opportunistic investments.

The Company’s initial investment into the Emirate of Ras Al Khaimah comes ahead of major tourism and infrastructure developments
NewGen plans to diversify via additional real estate investments in Abu Dhabi pending potential transactions to provide additional capital

BANGKOK, June 12, 2025 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced its planned US$45 million strategic investment in the United Arab Emirates (“UAE”) real estate market, focusing on properties near the upcoming Wynn Al Marjan Island integrated resort. This new initiative represents a diversification of the Company’s investment portfolio beyond its traditional IVF business operations, targeting properties for acquisition and future resale to capitalize on the region’s exceptional growth prospects.

Ras Al Khaimah presents compelling investment fundamentals, including robust economic growth, political stability, and significant infrastructure developments that are driving property appreciation. The Emirate is experiencing heightened demand following the announcement of the Wynn Al Marjan Island integrated resort, a multi-billion dollar development set to open in early 2027. The region’s strategic location, with 31% of the world’s population within four hours’ flying time, combined with attractive investment policies including 100% foreign ownership and 0-9% corporate tax rates, creates an ideal environment for real estate appreciation. In order to diversify and hedge risk in its portfolio, NewGen is also planning to invest in properties in the Emirate of Abu Dhabi. Abu Dhabi’s real estate market offers a combination of stability and long-term growth potential, with proximity to attractions including Yas Island, luxury property developments, and mega-projects and key infrastructure projects.

To support this initiative, the Company has formally engaged UAE-based business development manager Samira Aissani, who recently met with NewGen’s leadership team in Hong Kong to align on the investment strategy. Ms. Aissani’s decade of experience in UAE real estate development, including her current role in plot procurement with BNW Development, positions her ideally to lead the Company’s property acquisition initiatives. The Company is also currently in advanced discussions regarding strategic plot acquisitions in Ras Al Khaimah and has established partnerships with prominent UAE developers to ensure optimal execution of its investment strategy.

In connection with the initiative, NewGen has executed a term sheet with Enclave Capital LLC (“Enclave”), which has already begun receiving strong interest from potential investors regarding the planned capital raise to support NewGen’s UAE real estate expansion. Enclave will serve as the Company’s financial adviser in connection with the Company’s intent to raise an additional US$45 million via subsequent transactions. The funds raised from these transactions would be used to build NewGen’s real estate portfolio and lay the groundwork for potential significant returns from these investments.

Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, commented, “This strategic move into Ras Al Khaimah’s dynamic real estate market represents an exciting opportunity to diversify our investment portfolio while capitalizing on one of the region’s most promising growth stories. With Ras Al Khaimah poised to welcome significant numbers of international visitors in the coming years and property values already showing exceptional appreciation, we are confident this investment will deliver substantial returns for our stakeholders while establishing a strong foundation for future growth. We look forward to leveraging this strategic positioning to create long-term value and drive continued success across our expanding business operations.”

About NewGen
NewGen is a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments. With a mission to aid couples and individuals in building families regardless of fertility challenges, NewGen has dedicated itself to creating increased access to infertility treatment and providing comprehensive fertility services for its customers. NewGen’s management team collectively has over a decade of experience in the fertility industry. NewGen’s clinics are located in Thailand, Cambodia, and Kyrgyzstan, and present a full suite of services for its patients, including comprehensive infertility and assisted reproductive technology treatments, egg and sperm donation, and surrogacy, in the appropriate jurisdictions, respectively. To learn more, visit www.newgenivf.com. The information contained on, or accessible through, NewGen’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.

Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future investments, growth strategy, and business strategy. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s ability to raise capital for the investments, realize business or investment opportunities, or changes in the regulatory, investment, or competitive environment in which the Company operates or intends to expand into. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s annual report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. Copies of these documents are available on the SEC’s website, www.sec.gov. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact
ICR, LLC
Robin Yang
Phone: +1 (212) 537-4406
Email: Newgenivf.IR@icrinc.com

FAQ

What is NewGen's (NIVF) planned investment amount in UAE real estate?

NewGen plans to invest US$45 million in UAE real estate, primarily in Ras Al Khaimah, with plans to raise an additional US$45 million for further expansion.

Where is NewGen (NIVF) planning to invest in UAE real estate?

NewGen is planning to invest in properties near the Wynn Al Marjan Island resort in Ras Al Khaimah, with additional plans to invest in Abu Dhabi.

Who will lead NewGen's (NIVF) UAE property acquisition initiatives?

Samira Aissani, a UAE-based business development manager with a decade of experience in UAE real estate development, will lead the property acquisition initiatives.

What is the purpose of NewGen's (NIVF) UAE real estate investment?

The investment aims to diversify NewGen's portfolio beyond its IVF business, targeting properties for acquisition and future resale to capitalize on the region's growth prospects.

How is NewGen (NIVF) financing its UAE real estate expansion?

NewGen has partnered with Enclave Capital LLC to raise an additional US$45 million through subsequent transactions to support its UAE real estate expansion.