Exited Projects Deliver Strong Results

Al Arabi Private Equity Fund

The final exit from Al Arabi Private Equity Fund in 2008 generated an annual Internal Rate of Return (IRR) of 20.2%. This compares favorably to the projected 20% IRR when the Fund was launched in 2005. The exit announcement came 30 months earlier than the expected date. Two partial exits for the Fund were previously announced, one with an IRR of 25% in late 2007 and another with an IRR of 22% in April 2008. The better-than-expected performance of Al Arabi Private Equity Fund reflects ADIH’s ability to select the right investments in banking, real estate and industrial sectors, and to devise prudent exit strategies.

The Lagoon Fund

Investors in ADIH’s Lagoon Fund also enjoyed returns that surpassed initial targets. With ADIH’s exit in late 2007, the total IRR was 21.8%, higher than the initially projected IRR of 20%. This translates into a total Return on Investment (ROI) of 30%, 2.5 percentage points above an expected ROI of 27.5%. The Lagoon Fund was launched in June 2006 to finance ADIH’s landmark project, the Lagoon, a US $90 million commercial and retail property development located at Bahrain’s premier Amwaj Islands. The Fund’s better-than-expected return reflects the significant interest in the project. With a master plan that draws references from internationally renowned destinations like London’s Covent Garden and Sydney’s Cockle Bay Wharf, the development houses retail and restaurant outlets that are available for ownership or lease.

Porta Reef Fund

ADIH delivered on-time partial exit of its Sharia-compliant Porta Reef Fund. The partial exit of Porta Reef demonstrates ADIH’s commitment to investors. Despite the downturn of the real estate market in the region that led to credit issues with some buyers and delayed payments, ADIH lived up to its investor promise. With a handover of units, Porta Reef is the first completed project on Reef Island, Kingdom of Bahrain.

Beirut Gate Fund

Full capital exit; the Beirut Gate Fund was originally launched in 2006. In recent years the Fund enjoyed significant demand from local and regional investors because of Lebanon’s economic resurgence. The stabilizing political scene, an increase in tourism and the information of a new government combined to improve the outlook for Lebanon as a growth market and the fortunes of the Fund. In this changing market, ADIH had the foresight to recognize the importance of Lebanon as an emerging investment area.