A 900,000 square foot 'island' in Dubai's The World is sold by Bahrain's VCBank
Bahrain's VCBank exits land forming The World project in Dubai
Dubai: With property and land values in Dubai on a 3-year golden run, Bahrain’s Venture Capital Bank timed its sale of a 900,000 square feet ‘island’ plot that is part of ‘The World’ project
VCBank, a wholesale Islamic bank licensed by Central Bank of Bahrain, did this through selling its stake in ‘The World Development Co’, the operating company that holds the plot on its books, located off the city's coast.
The Bank was recently acquired by Esterad Investment Company B.S.C, (“Esterad”) a Bahrain based investment company and one of the oldest investment firms in the kingdom.
“The Bank is pleased to announce the successful exit for investors from this unique investment following the boom in the UAE real estate market despite the challenges that the project experienced since its inception,” said Shaikh Mohamed Duaij Khalifa Alkhalifa, Chairman of VCBank.
Project delays and then some
‘The World’ has had a chequered past, having gone through multiple delays through the years. In the recent past, plots making up the multi-‘island’ project have been coming up for auctions.
Based on VCBank’s exit, it’s clear there are investors who espy potential in developing some of the sites forming the cluster. Much of the activity is centered around creating upscale hospitality projects.
A clean break
After its acquisition by Esterad, VCBank is ‘under new leadership, and is now offering an alternative exit strategy for its investors including options to convert into the bank’s newly issued perpetual Sukuk’, said Shaikh Mohamed.
We are experiencing exceptional positive feedback from the market and our investors on the conversion to perpetual sukuk.
“VCBank is expected to merge with Esterad within the next 6 months, which will strengthen the bank’s financial position and return the bank to profitability.”
More to follow...