Investors in ADIH's Lagoon Fund enjoy higher than expected returns

As ADIH prepares to exit the fund, the total internal rate of return (IRR) is anticipated to be 21.75%, higher than the initially projected IRR of 20%, which translates into a total Return on Investment (ROI) of 30%, 2.5% over and above an expected ROI of 27.5%. The 30% total return of the project amounts to $12.6m over the fund's life of 16 months.

The Lagoon fund, whose initial intended raised capital was $41.5m, managed to raise $42m in equity. The fund was launched in June 2006 to finance ADIH"s landmark project, the Lagoon, which is a $90m commercial and retail property development located at Bahrain's premier Amwaj Islands.

The fund's over- achievement reflects the significant interest in the project. With a master plan that draws reference from internationally renowned destinations such as London's Covent Garden and Sydney's Cockle Bay Wharf, the development houses retail and restaurant outlets that are available for ownership or lease. The Lagoon's commercial development consists of eight low-rise blocks with sea-front views, ample shaded parking, and a one-kilometer stretch of walkway that circles the project's perimeter.

Demand for the project has been fuelled by its strategic location, and internationally recognized brands have taken up units and are currently undertaking fit-out works. Such brands include starbucks, Pizza Express, Gaucho Grill, Le Pain Quite, Sarai, Sultan Centre and many more. Final handover of the units is expected to take place throughout January.

Rashad Janahi, CEO, ADIH, said, "When we first launched the fund, we witnessed substantial over-subscription and were confident that the investment would yield strong returns. The higher than expected returns signify ADIH's commitment to structuring and exiting top-quality deals with long-term impact.

"As one of the key projects in ADIH's portfolio, the Lagoon's on-time delivery and high-performance is exemplary of the strength of our business proposition," said Mr. Janahi.

Saud Al Nusuf, Chairman of The Lagoon, said, "We are extremely pleased with the progress of the Lagoon, which we consider to be an essential element of Amwaj Islands. As we finish handing over the units, we take pride in the types of universal brands that we have been able to attract, and we are greatly looking forward to the official opening of the Lagoon at the end of the first quarter of 2008."