Closed in July 2005, KSA I was the first fund to allow non-Saudi nationals to participate in the rapid growth of the Saudi Arabia residential real estate market. The US$52.5 million fund invested in a residential real estate development in a northern suburb of Riyadh, with the principal objective of achieving medium term capital appreciation and dividend payouts.
In March 2006, the Fund received payment from the sale of a portion of its investment and distributed 41% of the capital along with the profits to investors. The Fund has now distributed the remainder of the capital and profits, providing investors with a final Internal Rate of Return (IRR) of 15.5% per annum vs. the original anticipated IRR of 10% per annum.
Commenting on the Bank's exit from KSA I, Jacques Bernard, Managing Director of Asset Management at Unicorn, said: "We are very pleased to be able to provide investors with such an outstanding rate of return, particularly given the income-generating nature of the fund. We remain committed to sourcing exceptional investment opportunities on behalf of our clients and will continue to seek ways of allowing our clients to benefit from the sustainable high growth of the regional real estate sector."
Unicorn has also successfully exited its first private equity transaction, an investment in The Gardens, an assisted living real estate property located in Orange County, California. The Gardens caters to seniors suffering from dementia who require full-time personal and medical care. Unicorn entered into its investment in The Gardens in November 2004, and its exit following a two-year holding period provides investors with the targeted IRR of 21%.
Majid Al-Sayed Bader Al-Refai, Unicorn's Managing Director & Chief Executive Officer, said; "KSA I and The Gardens were Unicorn's first two investments, and we are proud to have originated, structured and exited these transactions so soon after we commenced operations in 2004. They attest to our ability to not only source competitive investment opportunities on behalf of our clients, but also to complete the investment cycle successfully, providing strong returns to investors."
Browse
related articles
Unicorn announces successful exits from its two earliest investments
- Bahrain: Monday, March 26 - 2007 at 14:49
- PRESS RELEASE
Unicorn Investment Bank (Unicorn) today announces its successful exit from the Bank's two earliest investments: Unicorn KSA Real Estate Fund I (KSA I) and the Bank's private equity investment in The Gardens Residential Community (The Gardens) in the United States.
Also consider reading:
Digg
Facebook
LinkedIn
Twitter
Browse
related articles
Log in to request more information from Unicorn Investment Bank (UIB)
Notes and media contacts
About Unicorn Investment Bank:• Unicorn commenced operations on 5 May 2004 in the Kingdom of Bahrain.
• In its first eight months of business, Unicorn achieved revenues of US$36.4m and a net profit of US$17.1m. In 2005 (its second year of operation), Unicorn reported full year revenues of US$52.6m and a net profit of US$23.6m. In 2006, Unicorn reported full year revenues of US$66.9m and net profit of US$30.1m.
• Unicorn successfully increased its capital by US$115m in July 2006 and shareholders' equity more than doubled during 2006 to reach US$254.1m at 31 December 2006.
• Unicorn has achieved a number of 'firsts' in Islamic banking. In November 2005, the Bank closed Unicorn KSA Real Estate Fund I, the first equity fund to allow non-Saudi nationals to invest in the growing Saudi Arabia real estate market.
• In May 2006, Unicorn launched Gulf Springs, the first pan-GCC real estate fund, in partnership with leading regional real-estate developers.
• In June 2006, Unicorn acquired a 22.22% equity stake in First Dawood Islamic Bank, a newly established Islamic bank in Pakistan.
• In July 2006, Unicorn, working in partnership with Standard Bank and the International Finance Corporation (IFC), successfully closed a landmark securitization transaction on behalf of Kingdom Installment Company of Saudi Arabia (KSA MBS I International Sukuk). This represented the first true-sale securitization in the GCC region.
• In September 2006, Unicorn and WestLB successfully closed a US$150m Musharaka Trust Sukuk for Kuwait's Investment Dar. This was the first Musharaka Sukuk structured with a put option for the investors and a call option for the issuer.
• In October 2006, Unicorn successfully completed the first closing of its Global Private Equity Fund I, a five-year closed-end fund offering investors the opportunity to participate in Sharia-compliant private equity investments globally.
• In January 2007, Unicorn completed its acquisition of a 75% equity stake (including 100% of management shares) in Turkish brokerage and asset management company Inter Yatirim Menkul Degerler.
• In February 2007, Unicorn, WestLB, ABC Islamic Bank E.C., Arab National Bank and Standard Bank Plc (together the Joint Lead Managers, Underwriters and Bookrunners) closed a landmark 3-year US$600 million Sukuk al-Ijara issue on behalf of Dar Al Arkan Real Estate Development Company (DAAR), a leading residential real estate developer in the Kingdom of Saudi Arabia. Unicorn also acted as structuring agent and Sharia advisor. The DAAR Sukuk marks the first international Sukuk issue for a Saudi corporate.
• Since its inception, UIB has already advised, structured and successfully placed deals with a total value approaching US$1.5 billion.
Media contacts:
Mai AlJishi
Corporate Communications - Unicorn Investment Bank
Bahrain Tel: +973 17566071
Bahrain Mobile: +973 39467956
Mark Lunn of Gavin Anderson & Co, London
UK Tel: +44 (0) 20 7554 1400
UK Mobile: +44 (0) 7775 992 309
George Tucker of Gavin Anderson & Co, London
UK Tel: +44 (0) 20 7554 1400
UK Mobile: +44 (0) 7979 803 066
Posted by Janeta Novakovic, Assistant News EditorMonday, March 26 - 2007 at 14:49 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
Disclaimer:
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of AME Info FZ LLC / Emap Limited. AME Info FZ LLC / Emap Limited is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.
For details about submitting your stories, please read the guide - all content published is subject to our terms and conditions
It looks like you are using a Mac - check out our 
Web Feeds