Gulf Islamic Investments yield generating portfolio touches USD 50 million

Gulf Islamic Investments today announced their latest closing of a fund raising round for a staff accommodation building in Dubai Investment Park, as part of a Sale and Leaseback transaction. The total acquisition costs for the 3,000 sqm, 241-room property was AED 58 million and this brings the total portfolio to USD 50m.

Mr. Mohammed Al-Hassan, co-founder and CEO GCC of Gulf Islamic Investments said: “The transaction was very attractive to our investor base who is looking for high yield generating assets, with limited downside risk. The moderate acquisition price, combined with healthy rental payments from a high quality tenant, is expected to result in a rental yield in excess of 11.6% and, after factoring a very moderate value appreciation after two years, an expected total return on in- vestment of 46%”.

Mr. Pankaj Gupta, co-founder and CEO UAE of Gulf Islamic Investments added: “this is another successful transaction closed by GII, demonstrating our exceptional access to capital for attractively-priced yield opportunities. In total, GII closed AED 124 million of similar staff accommodation properties since August 2014 and has proven to be a reliable partner for companies seeking to achieve liquidity on their real estate assets. We anticipate closing another AED 115 million of similar transactions over the next few weeks”.

Besides real estate, GII continues to expand its private equity practice with a special focus on the food industry in the GCC. Mr. Al-Hassan substantiated by saying that: “GII looks for diversified investment opportunities across a wide range of alternative assets classes. We find that the entire food industry, from food production to food processing and food service industry has tremendous growth potential in a region which is already a major hub for the food ingredient trading industry. GII and its investors expect to invest significantly over the coming years in setting-up local food production facilities (e.g. fresh produces, aquaculture) but also buying out and providing capital to promising food processing and food service companies”.