The closed-ended Fund will have an initial term of five years.
"In the last few years economic stability has started to take hold in Central and Latin America, which has resulted in unprecedented growth in the region's real estate sector.
The robust development of capital markets in Mexico, Brazil, Argentina and Costa Rica has increased liquidity, a clear indicator of positive, economic progress," said Ithmaar Bank Chairman, Khalid Abdulla-Janahi.
Waleed Ahmad Al Sharhan, Chairman, Al Safat Investment Company stated, "A long-awaited period of sustained economic growth is finally occurring in much of Latin America.
After decades of failed economic policies, much of the region is slowly entering an era of stability and productivity.
This growth has direct co-relation to the upward spiral in the real estate sector in the region. Real estate development activity is gaining traction, although demand outstrips the supply."
The Latin American Real Estate Fund provides sophisticated investors in the GCC with the opportunity to participate in the growth these developing markets are currently experiencing.
The Fund is expected to provide a financial boost to local real estate markets in Latin America, and also benefit GCC regional investors by delivering profitable returns.
Arabian Ventures CEO, Mishal Al Jarallah added, "Central and Latin America have become increasingly market friendly in recent years.
This trend, along with the political stability that many countries in the region are currently enjoying, has created significant opportunities in many economic sectors, not least in the booming real estate sector.
Arabian Ventures is always on the lookout for interesting opportunities in emerging markets, and is pleased to be working with such prestigious partners on this project."
Many countries in Latin America have benefited greatly from a commodity boom which has seen regional trade grow at a rate of 10 percent annually since 2005, fuelling demand in the real estate sector.
In addition, Latin America has a characteristically young population, with between 30 to 40 percent of the population aged less than 20 years, further contributing to the surge in housing and real estate developments.
Abdullah A. Al-Shaheen, Chief Executive Officer, Al Safat Investment Company, observed, "The Latin American Real Estate Fund provides us with a platform to participate in the growth and development of Latin America.
ASIC will continue to target investments in selected geographical locations and sectors in order to benefit from cyclical upturns, while diversifying risk.
ASIC's philosophy for private equity is to build value through a combination of conservative capital structures, sound business strategies, proper execution and Sharia compliant investment, which is the focal point of everything, the company does."
Ithmaar Development Company Chief Executive Officer, Mohammed Khalil Al Sayed said, "The launch of Latin American Real Estate Fund reinforces our position as a leading player in the global real estate development sector.
Our entry into Latin America signals our intention to further expand our geographical footprint, while providing attractive returns to investors in the region."
This Fund will provide the benefits of investing in Private Equity in general, and in a well diversified Sharia-compliant Real estate Fund in particular, which should be beneficial to investors, given the current state of upheavals of the Global capital markets.
The Fund's strategy is to leverage the Ithmaar Development Company's & ASIC's financial, strategic and managerial expertise, unlocking the investment's potential and increasing valuations upon exit.
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Ithmaar Development Company, Al Safat Investment Company and Arabian Ventures launch $500m Latin American Real Estate Fund
- Bahrain: Wednesday, May 21 - 2008 at 16:33
- PRESS RELEASE
Bahrain-based Ithmaar Development Company, the development arm of the Ithmaar banking group, Kuwait-based Al Safat Investment Company (ASIC), the parent company of Al Safat Group, and Bahrain-based Arabian Ventures announced the launch of a $500m Sharia-compliant real estate fund targeting real estate assets in Latin America.
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About Latin American real Estate FundThe size of the Fund is $500m.
Al Safat Investment Company, Kuwait, Ithmaar Bank, and Arabian Ventures Bahrain are the Founders and Cornerstone investors.
The Fund is US dollar denominated, although it will invest using local currencies.
It will be investing in real estate assets in Latin America, primarily focusing on but not limited to Brazil, Argentina, Colombia, Mexico, Ecuador, Venezuela, Chile & Costa Rica.
About Ithmaar Development Company:
Ithmaar Development Company was set up by Ithmaar Bank in 2006 and has been mandated to manage and execute major development projects, with a focus on real estate, infrastructure, resorts, hotels, medical facilities and commercial buildings. Ithmaar Development Company's activities also include, among others, management and development of property and related consultancy services, as well as facility management.
The company's initial portfolio of projects consists of the 'health island' project Dilmunia, Aljazayer Beach Resort, and a hotel/office tower project. The total value of these prestigious developments is estimated at around $3.3bn.
The $1.6bn Health Island (Dilmunia) entails the creation of international standard health and wellness facilities in a resort-style environment.
The project will be constructed on a man-made island, off the north-east coast of Bahrain, and will include a state-of-the-art diagnostic centre, nutrition/diabetes centre, cosmetic surgery, aesthetic medicine centre, women and children centre, alternative medicine centre and sports medicine centre.
The project will also include deluxe spas and boutique hotels, as well as residential clusters, commercial facilities and recreational amenities.
The $1.5bn Aljazayer Beach Resort project involves the creation of a world class leisure, family tourism and entertainment facility in the southwest coast of Bahrain.
The facilities will include public beaches, several hotels, marinas, a theme park, a water park, an aquarium, a cultural center, a commercial district, residential units and chalets.
The hotel/office tower project, estimated to cost $175m, comprises a hotel, including service apartments, and an office complex, and will be located off the up-market Seef District of Manama.
The hotel will be a luxurious family-oriented property, which will be the first of a chain of hotels that Ithmaar Development Company and its parent company Ithmaar Bank will develop within and outside the GCC countries.
Ithmaar Development Company is confident of establishing a sterling track record and setting a benchmark in conceptualising, developing and executing such world class projects in the fast growing regional real estate and property sector.
Ithmaar Development Company's professional team is led by its CEO & Member of the Board, Mohammed Khalil Al Sayed, who has a distinctive track record of leading major development and infrastructure projects.
About Al Safat Investment Company
Al Safat Investment Company ("Al Safat" or "ASIC") is a Shariah compliant; KSE listed Investment Company, based in Kuwait, engaged in establishing, developing, and restructuring companies in addition to providing investment banking, asset management and financial advisory services.
Al Safat is a leader in the private equity investments in Kuwait, and has presence in diverse business segments in Kuwait and the region i.e. real estate, healthcare, Takaful insurance, information & technology, travel & tourism, food & consumer goods, education, energy, industrial and financial sectors.
Al Safat participates in various investment activities for its own benefit and for the benefit of its clients in various business sectors. Its Principal activities (inside and out- side Kuwait) are:-
Acquisitions and restructuring of other companies
Asset Management
Private Equity Investments including Funds
Corporate Finance
Advisory & Consultancy Services
Mediation, Lending & Syndication
ASIC has grown rapidly over the last few years, expanding its operations across business segments and territories, resulting in substantial growth in revenues and profits.
Al Safat Investment Company has successfully established a group of subsidiary and sister companies. A total Market Cap of about $4bn of which 60% are listed companies in the Kuwaiti Stock Exchange, and the remaining 40% are the private equities that Al Safat holds a controlling stake.
www.alsafatinvest.com
Arabian Ventures:
Arabian Ventures Holding Company W.L.L. - a Bahrain-based real estate investment company whose principal activities include investing and developing Real Estate projects both in Bahrain and emerging markets.
Established in 2000, by Mohamed Husain Ali Yateem (Chairman) and Mishal Ahmed Abdulaziz Al Jarallah (Managing Director), AVH seeks out unique and exceptional projects that not only enables them to develop niche investment ventures but also allows them to capitalize and strengthen the company's desired goals and returns.
The company currently has development and interests in real estate in Zanzibar, Morocco, Bahrain and Kuwait and continues to review both short and long-term projects that fit within the company's tailored investment/investor profile.
Media contacts
Tariq Khonji
Ithmaar Development Company, Bahrain
Youssef M. Al-Mubaraki
Vice President - Head of corporate communication
Al Safat Investment Company, Kuwait
Direct line: - +965-2323621/2
Fax: - +965 2323620
Posted by Lara Lynn Golden, News EditorWednesday, May 21 - 2008 at 16:33 UAE local time (GMT+4)
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