Trowers & Hamlins advise Islamic investment bank on investment in Bahraini retail construction project
Trowers & Hamlins, the International law firm, has advised Capinnova Investment Bank, the Bahrain-based Islamic investment bank, on a $20million investment in a brand new retail construction project in Bahrain.
Capinnova Investment Bank is the Shari’a compliant arm of BBK (formerly known as Bank of Bahrain and Kuwait) and their investment has been structured according to Islamic principles, on the basis of istisna'a (construction finance) and an ijara forward lease.
Construction on what will be the largest commercial shopping mall in Bahrain’s historic Muharraq area is due for completion mid-way through 2010.
Neale Downes, Partner at Trowers & Hamlins in Bahrain, comments: “It’s clear the global and regional downturn has affected the commercial and residential construction market here in Bahrain. However, advising on a deal such as this is proof positive that well-planned projects with strong fundamentals and clearly identified and underserved markets can still get off the planning tables and onto the construction site.”
Neale Downes also believes the fact that the construction project is based in an area primarily populated by Bahraini locals, rather than expats, is significant.
Adds Neale Downes: “The success of this shopping mall will be far less reliant on expat spending. The site is in Bahrain’s historic core. We are delighted to have worked with Capinnova on a project that will prove very important to the local population and which, in line with Shari'a principles, will provide tangible social benefit to the community”.
In a sign of their growing relationship with Capinnova, Trowers & Hamlins has also recently advised Capinnova on a separate investment of $20million into a Bahrain-based industrial group through an aluminium financing deal.