ASAS makes first acquisition

Acquires grade-A commercial office building in Cairo, Egypt

ASAS focuses on investing in income-generating assets across the MENA region

Jeddah,KSA; December 21, 2010: Abraaj Capital, the region's leading private equity firm, announced today the first acquisition by its new income-generating real estate fund, ASAS, of a grade-A commercial office building in Cairo, Egypt.

ASAS, which means foundation in Arabic, is a yield-generating real estate fund that complies with the principles of Shari'a.  ASAS capitalises on the opportunity resulting from the lack of institutional ownership of commercial real estate in the Gulf and wider Middle East and North Africa (MENA) region, as well as the asset-heavy balance sheets of many regional companies and the severe undersupply in certain real estate sectors.

Structured as a unique blend of quarterly returns and sustained capital stability, ASAS focuses on long-term, income-generating assets in the real estate market. These characteristics of the fund have proven to be appealing to investors at a time when they are focused on cash-flow management.

"The ASAS private equity real estate platform is a demonstration of Abraaj Capital's commitment to its holistic alternative asset management strategy, leveraging the firm's expertise in the region with the support of a dedicated real estate investment team," said Mustafa Abdel-Wadood, Managing Director, Abraaj Capital.

ASAS invests based on the specific requirements of each real estate sector within each country in the MENA region, with the objective of generating yield.  In sectors where there is a lack of institutional capital, ASAS focuses on operationally essential assets such as logistics warehouses, education and healthcare facilities, supermarkets, low-to-middle income and corporate housing,  infrastructure type assets, and structured real estate transactions with strong counterparties.  In sectors where there are large supply-demand gaps, ASAS targets high quality real estate assets in the office and retail sectors.

"ASAS has made its first investment in a fully operational grade-A office building with high-quality multinational tenants," said Faisal Khan, Principal, Abraaj Capital. "The investment rationale is supported by an undersupply of premium office space in Cairo and by attractive economics."

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About Abraaj Capital:
Abraaj Capital is the biggest private equity group in the Middle East, North Africa and South Asia (MENASA). Since inception in 2002, it has raised close to US$ 7 billion and distributed almost US$ 3 billion to its investors. Headquartered in Dubai, the Abraaj Group operates eight offices in the region including in Istanbul, Cairo and Riyadh. Funds managed by the Abraaj Group or its predecessor entities have made 36 investments in 11 countries and achieved more than 20 exits.

More than 75 world-class investment professionals work for Abraaj Capital, which manages seven funds including; four buyout funds; Riyada Enterprise Development Fund, a Fund dedicated to small and medium enterprises; and ASAS, an income-generating real estate Fund. Assets under management at the end of 2009 were US$ 6.1 billion. Funds managed by the Abraaj Group have holdings in about two dozen companies in the region including Air Arabia, the region's biggest low-cost carrier; Acibadem Healthcare Group, Turkey's largest privately owned hospital operator; and Al Borg Laboratories, the Middle East's biggest privately owned medical-testing laboratory company.

Abraaj Capital has won many regional and international awards, including five consecutive years as 'Middle Eastern Private Equity Firm of the Year' from London-based Private Equity International. Abraaj Capital Limited, a member of the Abraaj Group, is licensed by the Dubai Financial Services Authority. The group is also an associate member of the European Venture Capital Association.

For further information, please contact:
Nicholas Nesson
ASDA'A Burson-Marsteller
Dubai, UAE
Tel: 971-4-3355969
Fax: 971-4-3356080
E-mail: n.nesson@asdaa.com

© Press Release 2010