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17 April 2024

Investate Realty posts full-year profit of $14.5m

Dr Habib Al Mulla (SUPPLIED)

By Staff Writers

Bahrain-based Investate Realty yesterday reported full-year 2008 revenues of $26.8 million (Dh98.4m) and a net profit of $14.5m.

This represents a 13.4 per cent return on the paid-up capital, the company said in a statement.

Investate's Chairman Dr Habib Al Mulla said: "Our ability to consistently deliver substantial returns to our shareholders and clients in spite of the prevailing volatility in the real estate markets highlights our commitment to successfully achieve our strategic targets year on year.

"In response to the current financial situation, Investate realigned its strategy in the second half of 2008 to ensure it would meet the challenges posed under this new economic order and to continue to diligently serve its stakeholders."

Commenting on the company's investment strategy for the upcoming year, Al Mulla said: "In the coming year, the focus will be on select markets that have been least impacted by the credit crisis and offer stable returns and those markets that were hit hard but are expected to offer significant upside potential. Our objective of becoming a leading real estate player with a particular focus on mid-income housing will be more conducive in the coming years."

Last year, Investate successfully structured a landmark Bahrain Financial Harbour development transaction in Bahrain and it also acquired 4.5-acre property on the banks of the River Thames in central London, which it aims to master-plan and redevelop into a significant residential-led mixed-use scheme.

In addition to these two major transactions, the company also strengthened its core business by continuing to expand its geographic and operational presence in key regional markets.

Investate's Chief Executive Officer and Board Member Salah Nooruddin said: "Our year-end results are a testament to our diligent market studies, and our ability to swiftly adapt to changes especially in response to the rapidly changing market conditions that we have witnessed over the last few months. In the short time since our inception, Investate has carved out a robust reputation in the real estate investment industry and our team is looking at ways to set new industry benchmarks for our unique projects."

He said: "Investate is aware of the changing needs of investors and the challenges businesses will face in 2009, but we see interesting opportunities arising which we will be sure to analyse and target on a selective basis to realise quality investments.

"In the upcoming year, we will be aggressively progressing our initiatives in Saudi Arabia through our newly established operating entity in Saudi Arabia and we will be scouring the European and other major markets for under-valued assets. We shall approach 2009 with cautious optimism," he said.