The Kuwait-based Gulf Holding Company (GHC), sponsored by Gulf Finance House (GFH) and Bayan Investment Company (Bayan), today announced the successful closure of its KD69 million private placement. GHC will use the equity to invest in various regional real estate and infrastructure development opportunities.
Announcing the details of the subscription to the placement, partners of GHC said the investment offer received a robust response from investors in Kuwait and the Gulf region, while formalities to increase GHC’s paid-in capital from KD 1 million to KD 70 million as a result of the placement have been completed. GHC is expected to be listed on the Kuwait Stock Exchange in early 2007.
Commenting on the successful closure of the placement, Mr. Esam Janahi, Chief Executive Officer and Board Member of GFH said: “The enthusiastic response to the placement is an endorsement of our strategy in offering growth-focused opportunities in the regional real estate and infrastructure development sectors.”
The placement offered 690,000,000 shares, while the projected Internal Rate of Return (IRR) is forecasted to be in excess of 20 per cent per annum. The minimum subscription in the placement was 100,000 shares with additional investments in multiples of 50,000 shares. Post-placement, GHC will have a paid-in capital of KD 70 million, up from its initial paid-in capital of KD 1 million.
“GHC will invest in various real estate development opportunities in the region that are designed to maximise returns to our investors and shareholders,” Mr. Janahi added.
Elaborating on the investments in Al Areen and Bahrain Financial Harbour (BFH), Mr. Faisal Al-Muttawa, Chairman and Managing Director of Bayan, said: “Al Areen and BFH are two significant projects that are being developed with the support and encouragement of the Government of the Kingdom of Bahrain. Both projects will contribute to the growth of the economy of the Kingdom of Bahrain and the region in general. The long-term nature of both these projects and others to follow will also ensure sustained generation of revenues.”
Mr. Al-Muttawa said GHC will develop the Al Areen Downtown and Residential South of BFH – two salient components of these landmark projects. The BFH Residential South will comprise five development parcels spread across a total area of 32,489 square metres. The component will have three luxury residential towers with 569 luxury apartments targeted at upper income Bahraini residents and expatriates, in addition to GCC nationals and resident expatriates.
“Situated within a high-class living environment, complete with restaurants, retail outlets and entertainment venues, BFH Residential South will be a unique world-class project offering luxurious lifestyle themes and facilities,” Mr. Al-Muttawa said.
The Downtown component of the mixed-use Al Areen Development will cover 260,821 square metres comprising luxury apartments, villas and commercial components. This freehold development will also have facilities such as cinemas, outdoor cafes, shopping outlets, restaurants and walkways.
