Gulf Finance House Commercial Bank & Abu Dhabi Investment House open Euro 144 million offering

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The portfolio will consist of a total lettable area of 431,925 square metres in Berlin, 80,494 square metres in Leipzig, 98,822 square metres in Düsseldorf and 136,684 square metres in Halle and other areas totaling 213,759.

Announcing the details of the offering, senior officials of GFHCB & ADIH said the investment vehicle has been conceived with the aim of tapping the upside potential of the residential property markets of Germany which will provide investors with strong and predictable returns. It will invest predominantly in residential units spanning a total lettable area of approximately 1,000,000 square meters.

Commenting on the partnership, Mr. Ebrahim Hussain, General Manager of GFHCB said:

'This vehicle is a milestone achievement for the bank in serving international markets. In the last one year since our inception, GFHCB has rapidly grown into a well-entrenched regional and global player in the property market and the German property fund will further boost the value of our investment strategy.'

Mr. Rashad Janahi, Chief Executive Officer of ADIH said: 'Our participation in the offer marks a watershed in the investment strategy of ADIH for global markets. It will add significant value to our investment portfolio enabling us to provide clients diversified investment opportunities across the region and the global markets.'

'The proposed investment of the German property fund will include 100 properties comprising of 15,386 residential units in different well-located areas of Germany. The fund will bring investors strong revenue streams and the upside potential of the investments also come from low acquisition prices and opportunities to manage the asset well targeting highly secured and predictable net revenues,' he said.

This investment vehicle will be advised by the Bahrain-based Gulf Finance House BSC (GFH), one of the leading Islamic Investment Banks in the region, which has built-up a strong track record in European income producing funds.

'The German residential property market is a highly liquid rental market with strong potential for capital gains. The market is also driven by easy availability of credit and low financing costs combined with a positive economic outlook, which have provided GFHCB with a favourable climate for investment,' Mr. Ebrahim Hussain, General Manager of GFHCB said.

GFHCB offers a wide variety of investment instruments focused on the real estate and property markets of the Kingdom of Bahrain and the region. The bank's portfolio also consists of several funds that have achieved excellent returns including Al Hareth French Property Fund, Amlak and Eqarat Al Khaleej. The bank is also the lead financier for the US$1 billion-plus Royal Metropolis project in the Hashemite Kingdom of Jordan. GFHCB also played a major role in raising funds for the US$1.3 billion Bahrain Financial Harbour through a Sukuk issue as well as participating in and sourcing the financial needs of the Royal University of Women in the Kingdom of Bahrain.

The maiden investment offer from ADIH was the US$75 million Al Arabi Private Equity Fund which offered returns in excess of 20 per cent per annum. The financial institution also successfully closed a US$100 million private placement for Energy City Qatar and has also launched a US$160 million private placement for the Beirut Gate project in Lebanon.