Global to launch $300m fund
Manama, July 3, 2007
Kuwait-based Global Investment House (Global) is preparing for the launch of a $300 million Sharia-compliant real estate development fund in Bahrain.
International law firm Trowers & Hamlins is advising on the fund, which it says is the first to take advantage of Bahrain's new regulatory regime for funds that are marketed only to 'accredited investors' - essentially institutional and sophisticated individual investors.
The new Central Bank of Bahrain (CBB) regime for funds marketed to accredited investors was introduced on June 1 this year.
The new rules are intended to promote the growth of hedge funds and other more esoteric and higher risk funds (including those investing and utilising derivatives) in Bahrain. The rules allow higher levels of leverage and a concentration into fewer investments in each fund.
'The Global Real Estate Ijarah Fund' will provide development financing for real estate projects across the GCC, plus Turkey, Egypt, Lebanon, Algeria, Morocco, Jordan and Tunisia.
Trowers & Hamlins says that the fund's targeting of greenfield and brownfield developments reflects the increasing focus of GCC real estate funds towards active management and away from a 'buy and hold' strategy.
The fund's minimum participation threshold is $100,000, with investors required to have a minimum of $1m in liquid assets before they can qualify to invest in the fund.