Shamil Bank launches Central and Eastern European Real Estate Fund
MANAMA –7 May, 2008 – Shamil Bank, a leading Bahrain-based Islamic commercial and investment bank, announced a GCC Road Show to promote a new € 150 million Sharia compliant fund, which takes an equal exposure on developmental and income generating real estate assets in Central and Eastern Europe. The Central and Eastern European Real Estate Fund will be launched at a Road Show kick-off event, to be held at the Ritz-Carlton Bahrain Hotel and Spa on 11 May, 2008. This will be followed by legs in Oman, the UAE and Qatar. The Fund, being launched in collaboration with Swiss-based Faisal Private Bank and Sharjah Islamic Bank, will have a term of five years. Seven assets in Romania, Bulgaria and Poland have been reserved for the Fund, to be acquired by it on closing. In addition, plans are afoot for the fund to invest in the Czech Republic, Croatia and Ukraine, among other countries of the former Soviet Bloc.
“Shamil Bank’s guided investment strategy has seen us exploring opportunities in emerging market locations throughout the world. Our entry into Central and Eastern Europe countries is reflective of our strategic vision of growth; to be present in markets which demonstrate potential and sustained return on investments in the long term,” said Shamil Bank Head of Private and Investment Banking Group, Abdul Hakim Khalil Al-Mutawa.
“The presence of Sharjah Islamic Bank and Faisal Private Bank in the fund with us is indicative of the strong confidence they have in the underlying assets and real estate market in Central and Eastern Europe. Central and Eastern European countries have experienced dramatic economic developments, with inward investment flows to various sectors of the economy having clearly demonstrable effects on their real estate sector,” added Al-Mutawa.
Since accession to the European Union (EU), Romania, Bulgaria and Poland have experienced explosive growth in their economies, primarily driven by real estate and property related investments.
“Furthermore, most of these economies are in transitional stages, ahead of their integration into the globalised economy, which is a good reason for international investors to commit to the region. Our fund portfolio will combine income generating real estate assets, as well as investments in developmental projects - a strategy we believe is demonstrative of our philosophy of investing in productive assets and investments which create value for our investors and for the communities we invest in,” concluded Al-Mutawa
This fund follows on the heels of Shamil Bank’s $90 million ‘Shamil Bosphorus Modaraba’, which was launched in 2007, and invests in Sharia-compliant real estate developments in Turkey. The Bank is projecting a return on investment of close to 60 per cent over the investment term for the Bosphorous Modaraba, which caters to different market niches, activities and locations within Turkey.
About Shamil Bank:
Shamil Bank is a Bahrain-based Islamic retail bank licensed and regulated by the Central Bank of Bahrain, with commercial and investment banking activities. It has grown steadily to become one of Bahrain’s leading financial institutions.
Shamil Bank provides a diverse range of products and services that cater to the financing and investment needs of individuals and institutions. Conducting its business in compliance with the principles of Sharia’a, it operates a network of local branches and maintains a presence in overseas markets through its subsidiaries, associated and affiliated companies.
Shamil Bank is a wholly owned subsidiary of Ithmaar Bank BSC, a full service investment bank.
About Ithmaar banking group:
The Ithmaar banking group consists of: Ithmaar Bank, Shamil Bank, Solidarity (an Islamic insurance company), Faisal Private Bank (Switzerland), Faysal Bank Limited (Pakistan), First Leasing Bank and Ithmaar Development Company. The group’s services, including investment, private, retail, and commercial banking, private equity, mergers & acquisition advice, takaful, leasing, and real estate development, form a 360 degrees value chain that embraces the entire spectrum of banking and financial services.