IIB Business Bay Properties Limited was established in 2005 to own 50% of One @ Business Bay, a 31-storey commercial tower in Dubai under development at a total cost of US$94.1 million. The Bank identified an imbalance in the supply / demand equation for prime offices in Dubai and entered into a partnership with Omniyat Properties, part of the Dubai-based Al Masa Group, to develop a world-class office building. The tower's location will be in the rapidly developing Business Bay district of Dubai which, under a Dubai Government master development plan, is destined to become the new central business district for Dubai, eventually comprising some 250-300 towers for commercial, retail, residential and hotel use.

The projected Internal Rate of Return ("IRR") for investors in this project was excess of 23% p.a. over the anticipated investment horizon of 12-18 months. Investor appetite for this investment proved to be very strong, as the fundamentals for the commercial property sector in Dubai remained very positive. Not only was this investment oversubscribed, but within three months of launching, all 30 office floors in the Tower were pre-sold at the target price. This assured our investors of excellent returns and eliminating an important element of risk in such investments. This was the first investment that IIB arranged in Dubai, but will serve as a model for similar investments in the future.

In December 2006, IIB achieved a profitable early exit for its investors from the project, following the sale of their 50% equity stake to their joint-venture partners in the project. The sale achieved a highly attractive Internal Rate of Return ("IRR") of 25% only 11 months after the original investment was made, compared with the planned minimum investment holding period of 18 months. The combination of IIB's financial, structuring and placement capabilities with Al Masa's marketing and development expertise proved to be an extremely successful formula.