MANAMA: Ibdar Bank (“Ibdar”), the Bahrain based Islamic wholesale investment bank, today announced the successful exit from its $30 million construction arm Sakan Development Company.
The exit, which generated strong returns of 15.95% ROI, follows the final sale of all Saar Central villas in February 2015 and the phased return of 100% of the capital to investors, which began in 2013 and was completed with the final capital repayment and profit distribution in April 2015.
The construction, of the $30 million Saar Central project that includes 82 luxurious villas, commenced in 2008 through the Bank’s construction arm Sakan Development Company.
“We are pleased with our successful exit from Sakan Development Company and our ability to have generated strong returns for our co-investors. This result is even more gratifying given the challenging market conditions faced since Saar Central project was first launched in 2008. Leveraging our experience in the sector and through a series of innovative measures, we were nevertheless able to capitalize on the fundamental strengths of the real estate market in Bahrain and to create an attractive value proposition for end users,” said Basel Al-Hag-Issa, CEO of Ibdar Bank.
“The success of our exit also serves to highlight the continued strength of GCC real estate overall, a sector we believe will remain attractive and will continue to witness growth both today and over the longer term creating opportunities for the Bank and our investors.”
Saar Central was established on 65,613 square-meter of land in Saar, one of the Kingdom’s most prominent and strategically located and sought after districts for high-end residential living. The Bank continues to look for opportunities to invest and develop real estate projects in Bahrain and regionally that are capable of filling market gaps and providing for strong returns to investors.
In addition to real estate, Ibdar is active in private equity in the GCC and MENA markets and has extensive experience in sectors including aviation, infrastructure, oil & gas, maritime and retail, among others.