iib exit prime london property in us$409 million deal
International Investment Bank, a globally-focused investment bank based in Bahrain, and Saudi Economic Development Company (SEDCO), a leading private Islamic investment firm in Saudi Arabia, today announced the US$409 million sale of the office building located at 33 Grosvenor Place in the prestigious Belgravia area of London. Purchased by the partners in June 2005 for US$280 million, this exit provides investors in the property with a 100% return on investment.
IIB’s Chief Executive Officer, Mr. Aabed Al Zeera, said: “We are delighted to announce this highly successful exit, which has allowed us to deliver superior returns to our investors. We have not only far exceeded initial projections, but we have also delivered this exceptional result well in advance of the original five year investment holding period. It is the aim of IIB to offer GCC investors a diverse range of high quality, Shari’ah-compliant investment opportunities from across multiple asset classes and geographic locations, and the exit from this London property underscores the success of our strategies and efforts to date. We will continue to work with SEDCO and other partners to introduce additional high quality investment opportunities including those in real estate assets in the region as well as other key European and Asian markets in which we are active.”
IIB’s Chief Operating Officer, Mr. Salah Nooruddin added: “The commercial property market in London has been booming over the past two years with demand for prime office space constantly on the rise. The substantial returns that we have been able to generate on this investment in such a short period of time underline the value of IIB’s strategic approach to investing. We seek out attractive assets that are diversified by country, sector and currency and are thereby able to provide our investors with a balanced portfolio as well as superior returns.”
He continued,: “This exit illustrates the strength and effectiveness of strategies that we have implemented in identifying and concluding transactions that not only meet but also exceed the expectations of our investors. We acquired this property only 18 months ago and are extremely pleased to achieve an early and extremely profitable exit.”
33 Grosvenor Place is a landmark building occupying a prime site in Central London. It overlooks the gardens of Buckingham Palace, and benefits from a long-term lease to the UK subsidiary of one of the world’s leading energy companies.
“We will also soon be offering our investors some new, attractive income-generating property investments in other European markets, and in keeping with our strategy of diversification, we are also finalizing some rewarding private equity deals in GCC countries,” concluded Mohamed Hadi Mejai , Executive Director of Direct Investment and Business Development.
About International Investment Bank
International Investment Bank B.S.C. (IIB) was incorporated in Bahrain in October 2003 as an Islamic investment bank, with an authorised capital of US$200 million and a paid up capital of US$43 million. Its shareholders are high net worth individuals, business houses and institutions from the GCC states. The Bank undertakes three core business activities - private equity, real estate and asset management – and aims to offer its clients an internationally diversified range of investments generated through its network of strategic partnerships. For more information about the Bank, please visit the IIB website at www.iib-bahrain.com