Gulf Finance House announces sale of interest in Costa Coffee
Confirming the success of its private equity investment strategy and its commitment to maximise returns to clients, Gulf Finance House B.S.C. (“GFH”), today announced the sale to Jawad Business Group (“JBG”) of 49.9% of the Costa Coffee business in the Kingdom of Bahrain, the Kingdom of Saudi Arabia, the Sultanate of Oman and the State of Qatar. The sale realised a profit for GFH’s clients of 65% over a three year holding period.
The sale agreement was signed in Manama, Bahrain today by Mr Esam Janahi, Chief Executive Officer of GFH and Mr. Faisal Jawad, Chairman and Chief Executive Officer of JBG, in the presence of senior members of the GFH Private Equity and Venture Capital team and representatives from JBG.
Commenting on the sale, Mr. Esam Janahi, Chief Executive Officer of GFH said:
“At GFH we always aim to provide our clients with high yields. The investment climate now is one in which such returns are demanded. The successful exit of our Costa Coffee interests after a three-year investment period confirms GFH’s position as a leading Islamic investment bank.”
“The GFH Private Equity and Venture Capital team identify profitable opportunities to add value to companies operating within the GCC. Our team works with management at these companies to build their businesses.
“Our exit comes after establishing Costa Coffee as a well known and leading brand in the regional market. The business has expanded aggressively over the last three years and is currently operating from 42 outlets in the region.”
The sale of GFH’s interest in Costa Coffee follows closely a string of sales or floatations of other investments made by GFH. Al Khaleej Development Company (KDC or Tameer) was recently listed on the Bahrain and Kuwait Stock Exchanges with a profit of 170% to GFH clients holding the investment over a three and half year period; clients who invested in the reclamation phase of Bahrain Financial Harbour sold their investments for a profit of 50% over two years and those clients who invested in International Franchise Capital Limited (IFC) earned a profit of 50% over three years.
“Another successful exit comes at a time when GFH is increasing its origination and financing of major infrastructure projects in the region,” Mr Janahi added. GFH’s landmark projects include the US$1.3 billion Bahrain Financial Harbour and the US$750 million Al Alreen Desert Spa and Resort in the Kingdom of Bahrain, the US$1 billion Royal Metropolis project in the Hashemite Kingdom of Jordan, and the US$3.8 billion Legends development at Dubailand in the UAE. The Bank also has income producing property funds in the UK, France and Bahrain as well as a development project in Spain.”
“At GFH we are in the process of generating for our clients new and innovative investment opportunities to meet the needs of our clients. We will also be expanding our reach across the Middle East and North Africa (MENA) region,” Mr. Janahi said.
Commenting on the deal, Mr. Faisal Jawad, Chairman and CEO of JBG said: “We are adding the 49.9% to our portfolio to complete our 100% ownership of Costa Coffee. The deal complements our strategy of building our franchised business. We worked with GFH to build the Costa Coffee brand and there has been significant growth over the last three years. It is JBG's intention to continue its expansion of the Costa Coffee brand with further stores being added to the portfolio in the years to come.”