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ARAB-BRITISH CHAMBER OF COMMERCE

43

ADVERTORIAL

AN INNOVATIVE AND UNIQUE APPROACH SUPPORTS EXPANSION AT GATEHOUSE BANK The evolution of Gatehouse Bank over the last six years stands out as a success story even in the context of significant growth in the Islamic finance market. Shariah-compliant investment continues to gain traction across the world and Gatehouse Bank is well positioned to capitalise on this growth. It was initially incorporated in 2008 to act as an arranger and underwriter for Shariah-compliant syndicated financing and sukuk issuances and despite being in the early stages of its development, successfully navigated the global financial crisis. In August 2008, Gatehouse Bank acted as mandated lead arranger for a $70 million commodity murabaha facility for a GCC Corporation and in April 2009 acted as both mandated lead arranger and investment agent for a $80 million murabaha transaction for a Turkish Bank. In June 2009 it acted as mandated lead arranger on a $125 million, three year secured syndicated Ijara facility for a Kuwaiti Oil and Drilling company. A vital stage of Gatehouse Bank’s diversification began in December 2009 when - acting as the investment advisor - it completed its first real estate acquisition, the headquarter for a prominent corporation on behalf of high net worth clients and family offices in the GCC. In 2010, its real estate strategy gained momentum with several further acquisitions and it also made its first US property acquisition. “Our strategy was to buy long term income streams secured on well-let property,” explains Gatehouse Bank Chairman, Mr Fahed Faisal Boodai. “The properties were in good locations and let to financially strong tenants. By following this strategy we have been able to deliver excellent monthly dividends and strong equity returns for the benefit of the clients. This, coupled with a first class customer service offering, is what makes Gatehouse Bank stand out from its peers.” The success of its real estate strategy was underlined in December 2011 when the

Bank sealed the $54.5 million realised investment in the sale of the medical facility in California, generating a return on investment of 21% and an IRR of 14%. Gatehouse Bank’s evolution continued during 2011 with the implementation of an ambitious growth strategy by the board, which gained the support of consortium of new Kuwaiti institutions (including the Kuwait Investment Authority). The Bank received an additional capital injection of £100 million. During 2012 and 2013, Gatehouse Bank consolidated its track record of delivering profitable returns to its investors through the realisation of real estate investments as well as the diversification of its wealth products to include real estate funds, treasury notice accounts and structured finance fixed income products. In 2012, it expanded its geographical outreach and acquired a strategic stake in a Kuwaiti investment company, strengthening its GCC distribution capabilities and providing access to new origination capabilities. Geographical expansion continued in 2013 with the launch of a representative office in Kuala Lumpur, Malaysia. In September 2012, Gatehouse Bank advised the Malaysian Pilgrims Fund Board on its first UK real estate investment and the investor mandated the Bank in the same capacity for a second acquisition in Greater London which was successfully completed in January. Gatehouse Bank demonstrated further innovation and investment acumen

through the origination, structuring and placement of a residential-backed, income producing investment portfolio in 2013. This investment was completed in collaboration with a US partner with a proven track record in this sector. The Bank decided to replicate this successful approach in the UK and in December 2013 announced a partnership with Sigma, a UK residential and urban regeneration specialist. In September 2013, Gatehouse Bank structured, issued and placed the first real estate-backed sterling sukuk in the UK and shortly after completed the issuance of its first euro sukuk, backed by a French real estate asset. “We continue to see demand for good quality sukuk issuances that far outweighs supply,” says Mr Boodai. “In this context - and as the sukuk market continues its rapid development - we anticipate a move across geographies. One area that shows great promise is the EU. With market interest rates expected to remain low for some time, combined with improving growth amongst most member countries, we feel there is a natural synergy between issuers and investors.” Mr Boodai describes the recent opening of a client investment office in London’s Mayfair as another milestone for Gatehouse Bank. “We are confident that the office’s location and close proximity to areas occupied throughout the year by investors from the GCC and south east Asia will prove convenient for visiting investors from the GCC and south east Asia and will help us attract a new client base as we continue to expand.”

Profile for Distinctive Publishing

Economic Focus 6  

The Magazine of the Arab-British Chamber of Commerce

Economic Focus 6  

The Magazine of the Arab-British Chamber of Commerce

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