Al-Gharaballi: GCC Real Estate Fund acquires SAAR residential project
Global Investment House "Global" announced today the conclusion of a new land acquisition in the capital of Kingdom of Bahrain, Manama, as part of its GCC Real Estate Fund investment strategy.
Mr. Sameer A. Al-Gharaballi, Executive Vice President at Global, said that this investment provides the fund with an opportunity to participate in a well-positioned land with the objective of developing the same into a residential community, adding that the plot is in a strategic location with a total size of 54,700 sqm.
He pointed that this investment is a joint venture with the fund Advisor, Alargan Int’l Real Estate Company. This investment is the first in the kingdom of Bahrain and the fourth in the Gulf countries.
The IRR (Investment Rate of Return) of the investment is expected to be 16% while the expected period of development is 30 month. The fund stake in the investment is represents 80% and the remaining 20% represents Al Argan Bahrain (a subsidiary of Alargan Int’l Real Estate Company). The total project cost is around USD 40 million and all related financing will be in accordance with the Shariah principles.
Al-Gharaballi stated that the project will consist of 102 villas and 200 residential apartments in addition to amenity space and some commercial shops.
This project will contribute a solution to the housing problem in Bahrain. It will offer suitable villas and apartments for average income people in very suitable prices, specially that the project location is very strategic, he added.
He followed by saying, “our research proved that the Bahraini real estate market needs this type of project, as the demand is very high for residential assets.”
Al-Gharaballi declared that the fund is in the process of an extensive due diligence process of another such acquisition in Bahrain as well as in Kuwait and an announcement will be made very soon.
It is worth mentioning that all of the GCC Real Estate Fund is investments are in full compliance with the Islamic Shari’a. The main objective of the fund is to focus on development and acquisition opportunities in the GCC residential sector, and to maintain a balance between income and capital appreciation.