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BAHRAIN'S iconic financial centre will remain in the kingdom's hands after a multi-million dollar deal.
Gulf Financial House (GFH) and the Bahrain Financial Harbour Holding Company (BFHHC) announced the 'stake sale' of the centre to Emar Bahrain.
Emar Bahrain will hold a majority stake in the Bahrain Financial Harbour Financial Centre which consists of the two Harbour Towers and the Harbour Mall in a deal valuing the shares at over $425 million.
Emar Bahrain will buy the Financial Centre Investment Company which owns a 68 per cent interest in the Financial Centre. The majority stake is being sold by a consortium of Gulf-based clients of GFH.
"The Bahrain Financial Harbour is a project of great pride to the Bahraini nation," said BFHHC managing director and Emar Bahrain chairman Dr Omer Al Mardi.
"Keeping ownership and control of the Financial Centre at the heart of the project is a strategic objective and the sale to Emar Bahrain achieves that. The financial services industry of Bahrain is a cornerstone of the Bahraini economy and BFH is a key part of the future of Bahrain as a leading international financial centre.
"Our company is very pleased with its acquisition of a controlling stake in the Harbour Towers and the Harbour Mall. We have succeeded in keeping control of this strategic economic infrastructure within Bahrain.
"We paid an arms length market price based on a valuation performed by one of Bahrain's premier international real estate consultants. Since its launch the Financial Centre at BFH has been very successful in attracting tenants and establishing itself as Bahrain's premier office destination."
Peter Panayiotou, acting CEO of GFH added: "Bahrain Financial Harbour is one of the first of GFH's economic infrastructure projects and probably the most important in terms of helping us establish our credentials and expertise in this business.
"The project was financed in different phases by different groups of Gulf-based clients of the bank. The sale of the majority stake held by the Financial Centre Investment Company signals the final exit of GFH's private clients from the financing of the Harbour Towers and the Harbour Mall. For our clients this investment has been very profitable with our clients achieving a return of almost 80 per cent since November 2005."
