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Investments Group

As a core business division of Al Salam Bank Bahrain, the Investments Group is responsible for managing all of the Bank's related investment activities. The Group focuses on key sectors through which the Bank can meet the expectations and demands of its clients and ensure high risk-adjusted returns to its stakeholders.  In order to effectively develop and execute the Bank's investment strategy, a team of highly experienced professionals from various global tier-1 institutions has been assembled.  Using their extensive sector-specific knowledge across several industries, the members of the team work closely with the Placement team from the Banking Group in order to understand and meet the current market demand for investments, as well as to offer Al Salam Bank clients the opportunity to participate in the various identified investment opportunities. The Investments Group is structured into three specialist units:

  • Corporate Investments Unit
  • Real Estate Investments Unit
  • Product Structuring Unit

Corporate Investments Unit / Scope

The Unit focuses primarily on sourcing, managing and exiting private equity deals by leveraging a wealth of in-house extensive experience and relationships across the globe. The current focus is on emerging markets such as the Middle East, Indian Sub-Continent and East and Central Asia. These investments are focused in three key sectors:

  • Energy (including power generation, transmission and distribution, and biofuels)
  • Healthcare
  • Aviation

Sector teams have access to an extensive network and knowledge centres enabling us to evaluate potential opportunities and take advantage of global trends within a particular region and sector.

Deals

In a short period of time, the Unit has already built a strong deal pipeline.The Corporate Investments unit will seek to employ a creative investment structure that will benefit the management and ensure aligned interests to maximize returns to all stakeholders.

In the Islamic arena, each deal presents a unique challenge and based on our experience and extensive expertise, Al Salam Bank has already developed a variety of innovative structures.Full details will be included on the Bank’s website once these deals have been finalised.

Scope

The Real Estate Investments Unit invests across a variety of assets. These include:

Green field (new build projects)

  • Brown field (distressed and part-completed assets)
  • Existing completed assets.

Investments will be implemented in several strategic geographies and in shares of development companies, as well as in real estate investment trusts (REITs).Al Salam Bank will identify projects that not only have the potential to generate excellent returns to clients and shareholders, but that also contribute to the social and economic well-being of the community.

Current Projects

 Seri Tanjung Pinang development on Penang Island, Malaysia

In September 2006, Al Salam Bank signed a real estate development partnership agreement with a leading property developer and private real estate fund in Malaysia.

The Bank will participate with E&O Property Development Berhad – a leading blue chip developer in Malaysia with a land bank of over 850 acres, and CMREF 1 Sdn Bhd – a private real estate fund that is jointly sponsored by CIMB Real Estate Sdn Bhd (majority shareholders of whom are Khazanah Nasional Bhd) and Mapletree Dextra Pte Ltd – a wholly-owned subsidiary of Mapletree Investments Pte Ltd of Singapore (majority shareholders of whom are Temasek Holdings) in developing a seafront villa component of the Seri Tanjung Pinang development on Penang Island.

To be launched during the first half of 2007, the project will involve building 73 sea-fronting luxury villas on a landscaped plot of 980 acres. The properties will be targeted at foreigners and Malaysian nationals seeking upper class homes in Penang. The initial outlay for the project is estimated at around US$ 20 million. 

 Seri Tanjung Pinang is reputed to be the largest land reclamation waterfront project undertaken to date in Malaysia. A comprehensive mixed-use development covering 240 acres, Seri Tanjung Pinang will comprise bungalows, terraced and semi-detached homes, condominiums, commercial and retail precincts, recreational parks, marina and sea-facing esplanades.

Product Structuring Unit
Scope

This Unit develops innovative Shari’a-compliant products and structures for different units within the Bank’s Investments Group.

In particular, the Product Structuring Unit provides liquidity and exit options for the Corporate Investments and Real Estate Investments Units.