Bahrain-based International Investment Bank (IIB) has acquired a 90% stake in a 'high-quality' commercial portfolio comprising five properties in strategic locations in Paris and one in Lyon for $105 mln (EUR 80 mln).
Bahrain-based International Investment Bank (IIB) has acquired a 90% stake in a 'high-quality' commercial portfolio comprising five properties in strategic locations in Paris and one in Lyon for $105 mln (EUR 80 mln).
The bank's ceo Aabed Al Zeera said the projected Internal Rate of Return (IRR) on the investment is in the region of 12% per annum over an investment horizon of five years, with cash yields ranging from 8.6% to 9.2%. He said IIB partnered an asset manager with extensive experience in the structuring and management of Shari'ah-compliant real-estate investments in Europe. The unnamed asset manager holds the remaining 10% of the portfolio.
IIB was incorporated in Bahrain in October 2003 as an Islamic investment bank, with an authorised capital of $200 mln and focusing on the private equity, real estate and asset management sectors. Its shareholders are high net worth individuals, business houses and institutions from the Arab Gulf states. The French transaction is IIB's third investment in Europe, and its second real estate acquisition in the region.
