Gulf Islamic Investments plans to invest $ 600 million this year
Gulf Islamic Investments, a Dubai-based financial services company, aims to strengthen its real estate holdings and step up private equity investments this year as the global economy recovers from the coronavirus pandemic.
The company will spend between $ 300 million and $ 400 million to acquire properties in the Gulf, Europe and the United States and invest $ 200 million in the private equity space in India and Saudi Arabia, Mohammed Alhassan said. , founding partner and co-managing director. The National.
“We have $ 2 billion in assets under management and we are trying to reach $ 1 billion more by the end of the year … that includes real estate and private equity,” he said. -he declares.
GII invests in sectors such as real estate, private equity and venture capital. Its clients include family offices, banks, institutions, sovereign wealth funds and wealthy private investors in the GCC and Asia.
It is regulated by the Securities and Commodities Authority.
The company bought a residential block in London’s West End for £ 60million ($ 83.3million) this month and another property in Paris for $ 300million in March. He is in the process of purchasing commercial property in Florida and the deal will be finalized in the second quarter of this year, Alhassan said. He did not disclose more details about the investment.
GII has invested $ 1.2 billion in the real estate industry over the past seven years, acquiring residential, commercial and industrial buildings in Dubai, UK, France and USA.
The company bought an office building in the US state of Pennsylvania for $ 48 million, an Amazon distribution center in Germany for $ 144 million and an Airbus property in Newport, Wales for £ 30 million. sterling. He also bought Realogy’s New Jersey headquarters for $ 124 million.
He also acquired a police station in Chelsea, west London, for redevelopment three years ago for an undisclosed amount.
In the United Arab Emirates, it has logistics centers and staff quarters at the Dubai Investment Park. The company is also the largest investor in Dubai e-commerce company Mumzworld.
GII will finance new transactions through “our own balance sheet and also syndicating it to our shareholders,” Mr. Alhassan said.
The company has no plans to approach the bond market but will look to borrow money from banks in the future, he said.
“We have strong relationships with local banks, as well as international banks, and have negotiated with them for almost half a billion dollars in loans for our assets over the past seven years.”
In the area of private equity, the company intends to invest in India and Saudi Arabia. In India, it will focus on the healthcare, tech and consumer sectors through its “India Growth Portfolio” valued at $ 60 million.
“This is our second portfolio [in India]. We have already invested in health care. We own about 20-25% of the chain’s four hospitals. “
GII is looking for “niches” in the food industry and in other sectors of the kingdom.
It also plans to sell some of its investments this year in private equity and real estate. However, Mr Alhassan did not disclose which assets the company intended to sell.
Mr Alhassan is optimistic about the London property market and said areas such as Mayfair and Chelsea are performing well.
“If you have a new development and a great location, people will buy because it’s a hub. There is always a demand in the market, ”he said.
Mr Alhassan said the company “is doing very well and we are profitable,” when asked about revenue targets for 2021, but did not release figures.
GII is evaluating an initial public offering but will make a decision on it when “the time is right”.
Other companies in the region such as Bahrain-listed private equity and alternative asset manager Investcorp are also investing in real estate in Europe and the United States as part of their expansion plans.
Bahrain’s Arcapita acquired a major distribution center in the United States earlier this month as it continues to expand its portfolio of industrial properties in the world’s largest economy.