GFH Financial says returns $53 million to investors

Bahrain-based firm reports dividends from investments in US, Bahrain, UAE and India
GFH Financial says returns $53 million to investors
Hisham Alrayes, CEO of GFH. (Photo for illustrative purposes only)
By Sarah Townsend
Sun 30 Aug 2015 05:59 PM

Bahrain’s GFH Financial Group said on Sunday that it has distributed dividends of $53 million to its funds’ investors, from investments in Bahrain, the UAE, US and India.

In line with it's new strategy, GFH has spent the last 18 months investing in projects intended to provide steady cash yields for investors, the company said.

For example, Diversified US Residential Portfolio (DURP) – an investment in US residential assets – distributed dividends of $1.3 million to investors.

The portfolio comprises two multiple-dwelling residential properties, one in Houston, the other in Atlanta, with 1,300 apartments in total and 95 percent occupancy.

The company has also distributed dividends of $1 million this year from investments in Philadelphia Private School, a Dubai-based school for around 1,900 students.

Dividends of $7.9 million came from industrial firm Cemena Investment Company, which owns Bahrain cement plant Falcon Cement Company (FCC) and Aluminum Extrusion Company (Balexco).

A total of $28 million of dividends was distributed to investors from part of Mumbai Economic Development Zone (MEDZ) project – GFH’s flagship project in India.

The project has two main components: the Energy City Navi Mumbai (ECNM) and Mumbai IT & Telecom City (MITTIC) development schemes covering nearly 1,300 acres of prime development land at Navi Mumbai in the state of Maharashtra.

GFH Financial Group CEO Hisham Alrayes said: “With these cash distributions we were able to fulfill our promise to investors, confirming the flexibility and efficiency of the group’s strategy.

“During the year we have also invested in an operating mall in Jeddah and another British curriculum school in Dubai, dividends for which will flow to investors from next year.

“We will continue to look for promising investment opportunities which are expected to provide the Group and our co-investors with high cash yields and double digit total returns.”

Earlier this month, the group reported net profit of $13.6 million in the first six months of 2015, down on the $14.8 million it made in previous six months.

It added that last year’s results included a one-off income of $33 million as a result of a recovery, and noted that second quarter profit had in part been generated from the placement of a new investment in Dubai, coupled with improved performance from the group’s subsidiary, Khaleeji Commercial Bank.

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