Shamil Bank Delegation meets with ‘Shamil Bosphorus Modaraba’ Investors in Turkey
MANAMA – 19 July, 2008 – A delegation from Shamil Bank, a leading Bahrain-based Islamic bank and a wholly-owned subsidiary of Ithmaar Bank, recently traveled to Turkey to meet with partners and institutional investors of its successful Bosphorus Modaraba (Modaraba), a Sharia compliant Modaraba launched late last year to invest in lucrative real estate developments in Turkey.
The delegation from Shamil Bank included senior officials from the investment and private banking groups. During the two day visit the delegation met with its Turkish development partners and investors to examine various real estate projects in Istanbul and Antalya. The delegation visited the following sites as part of their visit: an office park development in Beylikduzu, a luxury homes development in Istinye, a budget housing project next to the Formula 1 track, and a golf resort and holiday homes development in Antalya.
Earlier this year Shamil Bank announced it had raised the $90 million capital required for its Modaraba, which has attracted strong interest from regional institutional investors seeking access to Turkey’s high-growth real estate sector. The Modaraba’s primary focus is on residential and mixed-use real estate developments in Istanbul and secondary homes on the Turkish cost. The total cost of the projects targeted is valued at approximately $330 million.
In addition, the bank’s delegation met with a selection of key institutional investors that constitute the Modaraba’s ‘Monitoring Board’. A comprehensive presentation was made on the Modaraba’s progress to the ‘Monitoring Board’ by Hisham A. Rahman Khalifa, Manager, Investment Banking, Shamil Bank.
“The real estate market in Turkey, and in particular Istanbul and Antalya, has experienced considerable growth following the recovery from the 2002 economic crisis. Unlike other markets, the Turkish real estate market still maintains intrinsic value in ongoing developments and has not reached a stage of over-supply or rampant speculation. This in turn provides our investors with the confidence of achieving solid gains on the projects currently invested in by the Modaraba, with a total value of over $330 million. A 60 per cent projected return on investment is expected over the three year investment term of the Modaraba,” said Hisham A. Rahman Khalifa.
“Shamil Bank is constantly on the lookout for interesting investment opportunities, especially in emerging markets like Turkey. Previously we have invested in China and we recently launched another Modaraba, focusing on the real estate sector in Central and Eastern Europe.
With the launch of Shamil’s Bosphorus Modaraba we have provided GCC investors with an opportunity to participate in the phenomenal growth the Turkish real estate sector is currently experiencing. Our recent delegation visit to Turkey reiterates our commitment to deliver positive returns to our investors,” said Faisal Al-Alwan, Chief Executive, Shamil Bank.
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, 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 B.S.C., 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.