Arbah Capital ends 2020 with four successful investments, raising AUM to 1.6 billion riyals

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Arbah Capital announced the closing of the year 2020 with exceptional success, despite facing difficult circumstances triggered by the COVID-19 pandemic.

The company said it was able to close two acquisitions in the US and provide refinancing for a real estate project located in the United Kingdom, with a total investment exceeding $ 150 million, thus achieving the highest gains in AUM in the company’s history. Net profit was around 6.4 million riyals, compared to 4.8 m riyals for the year 2019, a growth of 32%.

Arbah attributed the growth in profits to new investments in international real estate and contribution from the increase in the percentage of portfolios managed as an agent in the Saudi stock market. Saud Al-Ansari, Chairman of the Board of Directors, said, “We decided at the end of 2017 to change the strategy of Arbah Capital, to expand geographically and diversify our investment offering from just local stocks and real estate.

What we see today is the result of that critical decision, as AUM has increased from 200 million riyals at the end of 2017 to about 1.6 billion riyals by the end of 2020.”

Al-Ansari added: “Profitability and growth in AUM are our main drivers for the next five years so that we become one of the most prominent and respected investment houses in the region.” Mahmood Al-Kooheji, the CEO of Arbah Capital, said, “I am very proud to be able to announce the company’s success for the year 2020, despite the great challenges that the world has faced.”

The first investment was the acquisition of five long-term leased industrial buildings by large and well-known companies such as Walmart, Tesla and AT&T with a value of $ 75 million and an expected return of 9.50% annually to be distributed quarterly. This portfolio has already significantly increased in value through Asset Management efforts by the team.

The second was a refinancing of a real estate project in the centre of Glasgow, Scotland, valued at 7.5 m pounds with an expected annual return of 9%. This particular investment was a big challenge for the company despite its small size due to the Brexit issues raising concerns.

However, again Arbah’s successful Asset Management in the project provided investor confidence in raising funds needed in time. A third recent investment was the acquisition of a medical complex in the heart of Philadelphia, USA.

It is leased by several well-known names in the medical sector, including Temple Health (part of Temple University) and Ambrosia Treatment Center.

Arbah said it was able to acquire the asset at the height of Covid at an attractive discount to market valuation at a total acquisition value of $ 59 million, providing an expected return of 9% for investors annually, distributed quarterly.

Earlier, Al-Kooheji emphasised the Arbah Capital approach, saying: “The company’s basic strategy is to create opportunities for its investors in the appropriate growth sectors, and to organise investment in those sectors with key partners who have a proven track record.”

Speaking about the products that will be put on the market in early 2021, Al-Kooheji said, “We are currently working on providing innovative investment products aimed at building more assets in the vital and defensive sectors, and these products we believe will provide investors with an acceptable degree of stability at a time of a high degree of volatility in other markets.”