Ijara facility worth BD 21.77 million arranged by BisB
Club debt finance includes 4 major GCC financial institutions
Manama, Bahrain; Abu Dhabi Investment House's Lagoon Real Estate Development announced the completion of an acquisition deal worth BD 36.77 million through equity and an Ijara facility arranged by BisB to finalize the purchase of 46 units at The Lagoon project at Amwaj Islands, Bahrain. A signing ceremony was conducted on Thursday, 17 April 2008 at the Banyan Tree to finalize legal documentation for the Ijara facility provided by a consortium of four major regional financial institutions led by BisB as mandated lead arranger.
The equity contributed is BD 15 million, while the Ijara facility, worth BD 21.77 million will be for 5 years tenor.
The four main financial institutions involved in the deal include, Bahrain Islamic Bank - contributor of BD 8 million of the deal who is the mandated lead arranger and the investment agent on behalf of the participating banks, as well as, the book runner, documentation agent and structuring bank; Khaleeji Commercial Bank - contributor of BD 5 million; Kuwait Investment Company - contributor of BD 5 million; and Kuwait Finance House - Bahrain - contributor of BD 3.77 million.
Present at the ceremony were, Rashad Y. Janahi, Board Member and Managing Director - Abu Dhabi Investment House; Nader Ibrahim, General Manager and Head of Corporate & Institutional Banking Group - BisB; Ebrahim Hussain Ebrahim, CEO - KHCB; Noori Al Thukair, Senior Manager-Corporate Finance - KIC; and Sattam Al Gossaibi , Head of Corporate Finance - KFH. Trowers and Hamlin, legal counselors, conducted all legal work related to the transaction.
Abu Dhabi Investment House launched the Lagoon Leasing fund, end of 2007 which is a US$ 24million 3-year fund offering a minimum IRR of 20% by purchasing 60% of the units in the Lagoon. The fund in turn is the owner of Lagoon Real Estate Development (LRED) which will be leasing commercial units to prominent business in Bahrain and the GCC. The Lagoon is the only commercial development at Amwaj Islands in Bahrain, and is a major development that has on board renowned brand retail names. .
Return on investment for Lagoon Leasing investors is expected to be achieved through acquiring rental and sales revenue from leasing and selling units at the Lagoon development itself.
The Lagoon
The Lagoon fund, originally created to fund the US$90 million commercial / retail project located at Amwaj Islands, a 2.75 million square meter land reclamation project - exited its investors with an ROI of 30% - more than the originally projected 27.5% ROI.
The master plan for The Lagoon project itself, draws reference from other internationally acclaimed destinations such as London's Convent Garden and Sydney's Cockle Bay Wharf. Offering retail and restaurants outlets to consumers and visitors. The commercial development is comprised of eight low rise blocks, facing the sea front with ample covered parking at the rear and 1 km walkway that stretches the perimeter of The Lagoon. The Lagoon has also recently announced the appointment of Cluttons as the property manager to lease, sell and market units of the developments to those interested.
Handover of phases is currently taking place - with the final handover is aimed to take place within the next month - as coordinated with the owners for fit-outs.
Owners at the Lagoon include: Al Shaye'e Group, Planet Hollywood - Bahrain, as well as, various other internationally renowned names.
-Ends-
Press Release 2008
