Debuting in Lebanon, Abu Dhabi Investment House P.J.S.C (ADIH) has announced the launch of its third investment instrument since inception – a US$160 million private placement, to fund the development of the first phase of `Beirut Gate,’ an integrated sea view project in the Beirut Central District, commonly known as Solidere.
Announcing the investment offer to regional investors, ADIH officials said the placement is an ideal opportunity for regional investors to maximise returns on investments leveraging the growth of the real estate sector in Lebanon.
Commenting on the entry into Lebanon and the placement offer, Mr. Rashad Janahi, Chief Executive Officer of ADIH, said: “Lebanon’s real estate market is one of the leading destinations of foreign investments and our entry into this market is a significant step in our strategy of offering growth-oriented sophisticated investment opportunities to our clients with regional focus.”
“Beirut Gate has been conceived as a landmark project at the entrance of the Beirut Central District, which is the financial heart of the city. The project comprises seven plots on a total foot-print area of 229,871 square feet and a built-up area of almost 1.9 million square feet overlooking the famous Martyrs’ Square of Lebanon, downtown Beirut and the Mediterranean,” he said.
Beirut Gate will be a mixed-use project encompassing commercial and a major residential component, enabling investments in the prime location within the capital city of Lebanon.
ADIH is the investment manager for the entire project and the placement offer for the first phase of Beirut Gate is projected to offer a Return on Investment of 37.5 per cent over an 18-month period.
“The proceeds from the private placement will be utilised to pay for the initial cost of the land, master plan, Architectural design and obtaining the necessary construction permits for the development of Beirut Gate. The minimum subscription in the placement is US$100,000 and subsequent investments can be made in tranches of US$50, 000,” Mr. Janahi said.
He said the prime location of Beirut Gate in itself is an attraction and the project is in the proximity of Foch-Allenby area famed for its historic and diversified architecture blending Ottoman, Italian and French styles, the symbolic Martyr square, Place de L’Etoile, and the predominant shopping district, The New Souks.
“We are confident that the placement will generate a huge response considering Lebanon is a favoured destination for investors, particularly from the Arab countries since post 9/11. Beirut has been the centre of attraction for investors considering it is one of the most cosmopolitan Arab cities. The Beirut Central District is an historic area which has been rebuilt after the war under Societe Libanaise Pour Le Development et La Reconstruction (Solidere), and Beirut Gate is a unique project investors can be proud of participating in,” Mr. Janahi said.
Blending well with the traditional fabric of the city, Beirut Gate will be developed on the Martyrs’ Square axis that extends to Damascus Road, which passes through the middle of the city and to the port. The project is also close to the highway providing access to the airport.
“The Beirut Gate placement also marks our entry into markets outside the GCC in the region. In line with our charter to offer unique investment mechanisms, we are also in the process of developing instruments that will tap growth opportunities in international markets,” Mr. Janahi said.
ADIH, headquartered in Abu Dhabi was established in September 2005 and its investment offers include Al Arabi Private Equity Fund and a US$100 million Energy City – Qatar private placement which the financial institution offered exclusively in the UAE. The Energy City placement was successfully closed recently.
