Abu Dhabi Investment House (ADIH) announced today the exit of its Beirut Gate Fund, which funded the purchase, master-planning and full entitlements of 8 plots of land as a mixed-use development within the Solidere area in downtown Beirut.
Fawaz Ali Al Jowder, CEO of ADIH commented, "This exit reiterates ADIH’s ability to deliver as it promised especially during a time of tough global economic climate and after long political unrest in the country. Although this inherently caused a drastic price reduction in the real estate market, economic indicators are now showing signs of recovery over the second part of this year due to the stabilization of the political scene, increase in tourism and the formation of the new government, all of which contributed to the resurgence of confidence among the business sector. On this occasion, I would like to thank our investors for their trust and patience, as well as the ADIH team for this great achievement." The Beirut Gate Fund, incepted early 2006, received significant demand from local and regional investors given Lebanon’s economic boom specifically in the real estate and tourism sectors at that time.
The project comprised eight plots of land with a total foot-print area of 21,448 sqm and a built-up area of 178,500 sqm offering residential, commercial and retail opportunities. Beirut Gate is located in the heart of Beirut within the Solidere area. The unexpected war mid that year was destructive to Lebanon’s infrastructure, economy and political environment. Sale of the plots was affected as political Opposition groups staged the infamous demonstration camps lasting for almost two-years on the project lands, followed by the unforeseen global economic crisis. The election of the new Parliament and appointment of the new government this year, political and economic stability resurfaced sparking renewed interest in the real estate sector from local and international developers.
ADIH has previously exited its investors from the Lagoon fund with an ROI of 30% and a 2-year early exit from Al Arabi Private Equity Fund at a 20.2% IRR, above the projected figure. For its 2008 fiscal year, ADIH distributed 40% cash dividends to its shareholders.
View News Headlines
