Arcapita posts $159m Q2 loss
Bahrain-based Islamic investment house Arcapita posted a $159 million (Dh584m) second-quarter loss due to a slump in income from placement fees and lower asset valuations after property markets fell.
The company said on its website its income in the quarter ended December 31 fell to $12.6m from $101.8m a year earlier, when it posted a quarterly profit of $30.6m. Bahrain's investment houses such as Arcapita relied on fees for placing money with real estate projects and private equity deals, a market that collapsed after the real estate bubble burst in 2008.
Rival Gulf Finance House posted a $728m loss for 2009 and escaped default on a $300m loan this month by striking a deal with lenders to roll over a third of the loan by six months.
Arcapita, which last June asked for its BB-/B rating by Standard & Poor's to be withdrawn, said it reduced valuations on its assets by $92.8m during the second quarter. It said in January it had sold US sports gear maker Yakima that it had bought in 2001 for about $90m, but declined to disclose the return for investors from the exit.
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