Gulf Finance House raises KD15 million in private placement for Kuwait-based Gulf Development Real Estate Co.

The Shareholders of the company include premier investment houses as well as high net-worth investors from across the region.

Commenting on the success of the private placement, a senior official of GFH said that the company has been floated with the exclusive intention of channeling investments into blue-chip real estate assets in the GCC countries.

Mr. Esam Janahi, Chief Executive Officer of GFH said: "The success of the private placement shows the confidence the market has in the growth of the real estate sector of GCC, which is passing through an unprecedented boom phase, opening up steady growth avenues for informed investors." Though the company has just started operations, it has already begun sourcing unique investment opportunities within the real estate sector in the region, he said.

"The fact that the private placement was oversubscribed many times and raised KD5 million more than the originally intended KD10 million is a vindication of the strategic outlook of GFH towards the region's excellent real estate investment opportunities. The company will hold its first shareholder meeting within the next three weeks," he said.

"We have been able to get on board an elite group of strategic institutional and influential local and regional investors. We are confident that with the support of our investors Gulf Development Real Estate Co. will be successful in achieving high returns from investing in blue-chip real estate assets in Kuwait as well as other mega development projects in the wider GCC region," Mr. Janahi said.

Mr. A. Rahman A-Jasmi, Chief Placement Officer said: "GFH, apart from its pioneering role in developing Islamic banking and investment in the region, is a keen player in the real estate market of the Middle East. The bank has a major equity stake of 20 per cent in Gulf Development Real estate Co. while other major investors include Global Securities House, Global Investment House, KIPCO Asset Management Company (Kamco), National Investments Co., Kuwait Pipes and Industries Services Company and an array of prominent regional merchant families".

"We have been carefully studying the regional real estate market and have zeroed in on many development projects from all over the region which have the potential for high returns. Apart from focusing on the GCC region for investments in mega real estate projects, Gulf Development Real estate Co. will also act as a real estate investment boutique for clients creating high-yielding, relatively low-risk real estate funds. We will also manage the funds for the clients, adding value to their investments," Mr. Al-Jasmi said.

He said GFH has an acclaimed track record of growth in real estate investments in Bahrain, GCC as well as in Europe. "Our real estate investment products in the European markets - the Gulf Atlantic Real Estate (GARE) fund in the UK and the Gulf Atlantic FZ-LLC (GFF), focused on the property market in France, particularly Paris - are great successes," he said.

In the Bahrain market, GFH has a US$20 million investment fund - AQAR I - focused on high cash-yield investments within the serviced apartments sector. The fund has been a big success and pays cash dividends regularly to investors.

He said that GFH is confident that the regional real estate market is growing and compared to many other contemporary investment avenues, this sector is the most promising now.

In keeping with the healthy outlook of the real estate sector, GFH recently announced a US$600 million resort project - the Al Areen Desert Spa and Resort - in Manama, which will enhance Bahrain's status as a favoured place for family and health-oriented tourists. GFH is also the Lead Adviser for the US$1.3 billion financial city, Bahrain Financial Harbour (BFH).