Bahrain’s GFH Acquires Properties In The US

Bahrain’s Gulf Finance House (GFH) has acquired three residential properties in the US, the Islamic lender said in a statement, notifying its shareholders.

The acquisition will form part of the company’s diversified US residential portfolio and consist of two multi-family residential properties in Houston and one in Atlanta. The properties acquired have an overall occupancy of 94 per cent and nearly 1,300 apartments, the statement added.

“The properties have been selected due to their proximity to large and growing infrastructure assets in the respective cities and are expected to benefit from the economic recovery in the US,” GFH said.

“The portfolio will be offered to GFH clients with an expected average yield of nine per cent per annum and maturity of five years.”

The total size of the assets is $75 million, the bank said, emphasising that the transaction is expected to positively impact GFH’s third and fourth quarter results.

GFH’s first half profits in 2014 leapt by 152 per cent to reach $10.6 million compared to $4.2 million in the same period in 2013. Net profit for the second quarter amounted to $9.5 million compared to $2.7 million in Q2 2013.

Total income made during the first half rose 260 per cent to reach $88.2 million compared to $24.5 million in the corresponding period of 2013.

GFH, which was badly hit during the financial crisis and required multiple debt restructuring programme, reported that it has made debt repayments of approximately $7 million during H1 2014.

The bank has further repaid $25 million to its financiers during the early part of Q3 2014, it added.

In August, GFH signed a deal to obtain a $105 million, five-year Islamic credit facility from Kuwait Finance House that would help the Bahraini lender redeem two syndicated facilities and release some of its major assets.