Monday, Nov 02, 2015
Abu Dhabi: International Investment Bank (IIB) announced its exit from real estate investments in the UAE and Germany for a combined value of $163.1 million (Dh598.87 million).
The exit will help boost the bank’s liquidity as it considers other investments as part of a new strategy, and begins releasing cash to investors.
The exited investments include IIB German Property Company that generated $140.6 million in sales proceeds, and IIB Abu Dhabi Properties 1 that generated $22.8 million. The two disposals will allow for reinvestment in further profitable ventures.
The asset sales are in line with the bank’s new strategy of enhancing its liquidity by exiting from investments that have been on the books for a long time, and using the proceeds to invest in other transactions.
“Although we still regularly look at real estate deals brought to us by our global network of relationships, we are increasingly thinking outside the box at sectors and concepts which offer the opportunity for innovation, value addition, diversified risk, and superior risk adjusted returns for our shareholders and investors,” said Subhi Benkhadra, chief executive officer of IIB.
The bank was recently involved in aircraft sales and leaseback transactions, including the disposal of a Boeing 777-300 ER aircraft, which resulted in an IRR of more than 30 per cent.
Staff Report
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