Gulf Finance House opens subscriptions for USD 50 million

Announcing the details of the new fund, a senior spokesperson of GFH said that Al-Andalus, will seek to route investments into selected blue-chip real estate development projects targeting to offer an Internal Rate of Return (IRR) in excess of 20 per cent per annum over its two-year investment tenure.

Mr. Esam Janahi, CEO, GFH said: "Al-Andalus House is a sterling investment offer. At GFH, we have extensive experience in the real-estate investment sector, having successfully launched and closed similar investment vehicles in Bahrain, the GCC as also in the European markets of the United Kingdom and France."

GFH has already invested a seed capital of US$2 million. The oldest and the largest investment institution of Kuwait, Kuwait Investment Company (KIC), will act as placement partners.

Al-Andalus will further leverage on the rich experience of its Strategic Real Estate Consultant, Aguirre Newman, the Spanish-based professional advisory firm, which has long-standing relationships with property firms, developers, brokers and related companies in Western Costa Del Sol.

"The minimum subscription limit for investors in Al-Andalus has been set at US$100,000, and thereafter in multiples of US$25,000. The investment tenure for the fund will be two years after the closing date," Mr. Janahi said.

Additionally, Al-Andalus House may also offer opportunity to investors to own residential units during the divestment of the projects at the end of the 2-year investment period. Investors availing this opportunity, the acquisition price payable will be off-set against their equity investment in the company.

Mr. Janahi said: "Al-Andalus, which will invest under the tenets of the Islamic Sharia'h, is a high-value proposition, in light of the Spain's economic growth potential, which forecasts the highest GDP growth in Europe, coupled with the rapid growth in the country's residential real estate sector."

Mr. Janahi further said that the 100 kilometre Western Costa del Sol coastline strip, which runs from Malaga to the provincial border of Cadiz, and includes the resort town of Marbella, is highly favoured by foreign buyers of residential real estate as a holiday home or permanent residence.

"Analysts estimate that up to 1.7 million European families will choose Spain as their second home in the next five years, half of which are predicted to invest in the Costa del Sol area," he said.

"Our investment portfolio will include a strategic mix of residential type projects consisting of apartments, town houses and villas being developed by reputable developers," Mr. Janahi added.

Since its inception, GFH has acquired a strong reputation for structuring unique and innovative investment opportunities in various segments of the regional and international real-estate markets. During this period the bank has launched several real-estate focused investment and development projects in the regional and international arena.