Dubai – Mubasher: GFH Group on Wednesday announced that it has signed a $100 million agreement with a special purpose vehicle (SPV), owned by Terra Real Estate Investments LLC (Terra), with instrumental support from Abu Dhabi Financial Group (ADFG).
Under the deal, Terra will acquire 72% of Harbour Row Residence in Bahrain for $40 million, and part of GFH’s real estate project in Morocco for $60 million, according to the company’s statement to the Dubai Financial Market (DFM).
“This deal comes as part of planned exits from GFH’s real estate portfolio, to be undertaken over the next five years, with proceeds of the deals expected to support profit distribution and growth strategy of the group,” the statement highlighted.
However, the transaction is expected to have a positive impact on GFH’s 2019 financial results.
On Tuesday, the group, listed on Bahrain Bourse (BHB), Boursa Kuwait, and the DFM, announced plans to exit $100 million investments.
For the full-year 2018, the group posted an 11.4% year-on-year increase in its profits, logging $115 million, compared to $103.19 million.
By 11:17 am UAE time, GFH’s stock rose 4.12% at AED 0.94.
