Arcapita, Qatar Diar target utilities sector

MEGA CONSTRUCTION: An artists impression of the Lusail development in Qatar.

Bahrain's Arcapita Bank said on Saturday it will invest in utilities and other infrastructure with a state-owned Qatari firm that owns London's Chelsea Barracks and is developing a $5.5 billion project in Qatar.

Arcapita, which owns Northern Ireland's largest utility, Viridian Group, will invest in a venture with Qatari Diar Real Estate Investment Company, one of the agencies the government of Qatar is using to acquire assets around the world.

Their venture, Diar Infrastructure Services Company, will develop, own and operate utilities in Diar's $5.5 billion Lusail development as well as its other projects around the world, Arcapita said in a statement.

The infrastructure projects include district cooling, sewerage treatment, desalination, power generation and telecommunications, it said.

Arcapita, which complies with Islam's ban on lending on interest did not say how much it would invest or how it would raise the cash. The investment bank usually invests on behalf of its clients.

Arcapita Bank bought Viridian last year in a 1.62 billion pound ($3.29 billion) deal.

Qatari Diar bought the Chelsea Barracks from Britain's Ministry of Defence last year, saying it wanted to turn the parade ground and military buildings into apartments.

Diar is the owner and developer the Lusail project, a 35-square kilometre development that will include an entertainment district modelled on London's Piccadilly Circus.

It owns 45% of Barwa Real Estate Company, which agreed in October to buy and refurbish the Royal Monceau hotel in Paris.

Diar is owned by the Qatar Investment Authority (QIA), which invests the government's surplus oil and gas revenue, and made an unsuccessful 10.6 billion pound bid this year for J. Sainsbury's, Britain's third largest supermarket chain. (Reuters)

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