ADIH's Porta Reef Fund witnesses oversubscription

The Porta Reef Fund witnessed oversubscriptions as it closed on December 31 2007. The fund was launched to source financing for ADIH's landmark residential project on Bahrain's prestigious US $ 1.2 Billion Reef Island which is located only minutes away from the kingdom's latest business and residential district.

The $34m Porta Reef Fund will be used to develop the property, for which the first phase of sales witnessed unprecedented demand.

The fund's investment term is 24 months with a return projection in excess of 20% per annum is forecasted for investors.

ADIH, whose current Bahrain real estate portfolio includes Sunset Hills and the Lagoon, has established a steadfast track record, with two of its recent funds exceeding their respective return projections.

The exit of the Lagoon fund which was completed in December, witnessed a return on investment (ROI) of 30%,2.5% above the projected 27.5% ROI. In addition, ADIH's 2007 Al Arabi fund's partial exit generated an internal rate of return (IRR) of 25%, compared to the projected 20% that was forecasted at the fund's launch in 2005.

Porta Reef is composed of a trio of state-of-the-art 10 story residential buildings offering 2 and 3 bedroom apartments as well as luxurious penthouses. The US $ 90 million project is the first freehold development that is underway at Reef Island. Piling and infrastructure work has already started under contract with international specialist company Dutch foundation.

Rashad Janahi, CEO, ADIH said "Our clients continue to demonstrate their support and interest for ADIH's products and services as reflected in the latest milestone."

" We view the oversubscription the Porta Reef fund not only as a success for ADIH but also a reaffirmation that Bahrain's property sector will continue to boom."

Fawaz Al-Jowder, Chairman, Porta Reef, said " Porta Reef's sales were launched in October 2007 and we have already sold 65% of the total units in the towers."

"We are confident that Porta Reef will provide our clients with an address and lifestyle environment to be proud of."