In a significant development that emphasises the potential of Bahrain Financial Harbour (BFH) as a high-return investment offering that maximises clients’ wealth, Gulf Finance House BSC (GFH) Monday announced the successful exit of the first batch of investors in BFH, represented by BFH Inc., who invested in the US$1.3 billion landmark project in early 2003. During this holding period, investors who were represented by BFH Inc. earned a return of 50% on their investment, as against a return of 40% projected by GFH in two years.
BFH Inc held an indirect stake of 49.88% in the BFH Holding Company through representation by GFH. Highlighting the merits of the deal, Mr. Esam Janahi, Chairman of Bahrain Financial Harbour Holding Company and Chief Executive Officer of GFH, said: “The deal mirrors the core values of GFH and its commitment to ensuring high returns for its investors. The past few months have seen major participation by regional investors in the various components of BFH, particularly in Bahrain International Insurance Centre and the Harbour House, reflecting strong investor confidence in the project.”
“This successful exit is testimony to the strong fundamentals of the development. The high returns from the deal indicate the rising recognition of BFH as one of the best investment options in the region,” Mr. Janahi added.
BFH is a unique development that aims to integrate in one place the currently fragmented financial services sector in Bahrain. Based on an innovative concept, BFH will bolster Bahrain’s current position as the financial capital of the Middle East.
Commenting on the deal, Mr. Abdul Rahman Al Jasmi, Deputy Chief Executive Officer of GFH and board member of BFH, said: “The deal brings to the fore the immense value appreciation of BFH. It also reflects our endeavour to consistently deliver returns that exceed our initial projections. Needless to say, it sets a new standard for investment offerings in the region. The high return on the deal is sure to spur greater international interest in BFH. Over the past few months, BFH has recorded rapid progress marked by substantial bookings and investor enquiries.”
At the core of BFH is the Financial Centre, the first phase of the development which will house investment and commercial banks, offshore banking units, legal and advisory services, takaful companies, fund managers, IT firms, professional institutes, leasing companies and financial consultants. Construction for the Financial Centre commenced in March 2004 and is expected to complete by the end of 2006.
The Financial Centre is made up of the Dual Towers, the Financial Mall and the Harbour House. While the Dual Towers will provide office and commercial space for the financial services industry, the Financial Mall will house the Bahrain Stock Exchange, a clearing and settlement house and brokerage and other investment services firms such as stock brokers, market makers, proprietary investment firms, futures commission merchants and options brokers as well as other exclusive retail outlets. Connected to the Financial Mall through a suspended bridge, the Harbour House will provide attractive facilities for trading and commercial firms.
