The Bahrain Property Fund was incorporated as a closed shareholding company in the Kingdom of Bahrain on 8th March 2004, with the objective of acquiring a portfolio of properties in Bahrain that would provide investors with an Internal Rate of Return (”IRR”) of 10% per annum over a 5-7 year period.

The fund raised a total of BD7 million (US$ 18.6 million). A total of six properties have been acquired at a total purchase price of BD14.1 million (US$37.4 million), and this portfolio provided investors with exposure to a diversified mix of Bahrain’s property market i.e. offices, retail, and residential (apartments and villas) in a variety of locations.

All of the property purchases were financed on a Sharia’a compliant basis. Through a mixture of equity and borrowings, the overall portfolio had a conservative leverage of 41% of the total assets, which was within the original target of 50%.

Three of the properties were sold in 2006 and 2007 at exit prices which generated returns to investors in excess of the projections.