IIB acquires $105m French properties

MANAMA — International Investment Bank (IIB)yesterday announced its acquisition of a portfolio of commercial real estate properties in France, valued at $105 million.

By (Staff report)

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Published: Wed 21 Feb 2007, 8:42 AM

Last updated: Sat 4 Apr 2015, 9:55 PM

IIB is taking a 90 per cent stake in the portfolio, which comprises six commercial properties that are strategically located in France's two largest cities — Paris and Lyon — where the bank and its co-investors can effectively leverage continued growth and strong demand for office space in the French commercial property sector.

In making the acquisition, IIB has partnered an asset manager with extensive experience in the structuring and management of Shariah-compliant real-estate investments in Europe, and who holds the remaining 10 per cent share ownership in the portfolio.

The investment, which marks IIB's third European investment in total, and its second real estate acquisition in Europe, is aimed at providing the Bank's GCC-based investors with access to the buoyant French commercial property market, which continues to expand at a rapid rate and is expected to deliver opportunities for both healthy returns as well as diversification.

The projected internal rate of return (IRR) on the investment is in the region of 12.0 per cent per annum over an investment horizon of five years, with cash yields ranging from 8.6 per cent to 9.2 per cent per annum.

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