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Bahrain: IIB Launches Mid-Range Realty Firm

MANAMA, 24 April 2007 -- International Investment Bank (IIB) , a globally focused investment bank based in Bahrain, started yesterday the operation of its latest property venture, Sahab Al-Khaleej Real Estate Co . The company will develop and market properties to the underserved mid-range residential property market across the GCC region.

Sahab Al-Khaleej Real Estate Co . is the new name for the "Housing Development Company" announced earlier by IIB to reflect the aspiration of the company after key strategic investors joined such as First Investment and Al-Safwa Group based in Kuwait and Saudi Arabia-based Amjad Company .

At its recent annual general meeeting on Feb. 22, 2007, the authorized share capital of the company was increased to 50 million Bahraini dinars from 20 million Bahraini dinars. The issued share capital of the company was raised to 8.5 million dinars from 250,000 in order to accommodate the new shareholders.

The meeting also elected Tareq Al-Adsani as chairman of the board of Sahab Al-Khaleej Real Estate directors, who at present is the vice president -- Direct Investments of First Investment Company , Kuwait as chairman and Aabed Al-Zeera, CEO of IIB , as vice chairman.

Sahab Al-Khaleej has already started sourcing and evaluating potential opportunities across the Gulf region and will begin developing properties in the near future. Following comprehensive research undertaken by IIB of the GCC residential property market, it was determined that significant market potential exists in the mid-tier residential market, as the majority of developments in the GCC are currently either marketed as luxury residences or as affordable housing, leaving little choice of good value, high quality properties.

The launch of Sahab Al-Khaleej sees IIB adding a new source of investment return potential to its diverse and successful property investment portfolio. The past 12 months has seen IIB create in partnership with the Islamic Corporation for the Development of the Private Sector (ICD) , affiliate of the Islamic Development Bank , the Saudi Economic Development Co , and the Pension Agency a $100 million property development company for investment in the Saudi Arabian market, close a heavily oversubscribed offering for a 65 percent holding in Dubai's West Bay Tower and the acquisition of a 90 percent stake in a French property portfolio.

It has also seen the successful exit from an investment in a London based office building in March for $409 million, representing a 100 percent return for investors and a $ 80 million property development project in Dubai and a partial exit from a property fund in Bahrain.

Aabed Al-Zeera, chief executive officer of IIB , and Vice Chairman of Sahab Al-Khaleej Real Estate Co . said, "We believe there is significant opportunity for Sahab Al-Khaleej across the GCC. It was very clear from our research that a large market demand is not being met for mid-range residential properties. With the new level of funding and the expertise we now have and synergy created through the partnership with the key strategic investors such as First Investment , we are confident that Sahab Al Khaleej will grow into a prime force in this key part of the property market. IIB is now able to target the potentially high quality returns of the mid-range residential market on behalf of its investors."

Also explained Tareq Al Adsani, Chairman of Sahab that " the shareholders have high expectations and trust in the partnership and synergy created by the combined effort of IIB and First Investment . We have full support to the management team of the company and aim to select attractive and innovative development ideas that realize good returns and help Sahab differentiate itself in the market place".

"Our strategy as a bank aims at selecting key partners to offer attractive investment opportunities to our investors and shareholders. We are striving to diversify our reach across various sectors, regions and partners. Insha Allah, soon we will be presenting new opportunities in markets such as Germany, CIS countries and MENA." Concluded Mohamed Hadi Mejai, Executive Director of IIB 's Direct Investment & Business Development and Board member of Sahab .

© Arab News 2007