GFH in big spin-off deal; nets $3bn infrastructure portfolio

Bahrain-based GFH Financial Group today (January 16) announced the spinning out of its infrastructure and real estate assets under the newly established company, Infracorp, capitalised with more than $1 billion in infrastructure and developed assets into the company, which will specialise in investments focusing on accelerating growth and development of sustainable infrastructure assets and environments across the Gulf and global markets.


The new firm will be managing a portfolio of near $3 billion of infrastructure assets including land bank in the Gulf, North Africa and South Asia approximately 250 million sq ft earmarked for sustainable economic and social infrastructure. 


Specifically, the company focuses on investments in developing communities and investing in logistics and technologies that support sustainability and renewables as well as social infrastructure assets across the education and healthcare sectors. 


On the successful transaction, CEO Hisham Alrayes said: "We’re delighted to announce this important milestone for GFH, further enhancing our financial position through the spinning out of our infrastructure assets into a specialised company."


"The launch of Infracorp has been in response to the significant need and opportunity for private sector investment in the development of sustainable infrastructure as global economies transition to becoming more equitable and socially and environmentally conscious," he stated. 


Unprecedented levels of capital are needed to both upgrade and develop sustainable foundations and Infracorp is well placed to put its capital, insight and ethos into investments that support sustainable growth, he noted. 


GFH is known among the global investor community as one of the Middle East region’s most highly regarded and credible financial investment groups. 


Over two decades, it has established a strong and diverse portfolio of investments across the Middle East, US, UK, Asia and other key markets. 


Focusing on defensive sectors, including healthcare, education, and logistics, GFH is focused on delivering growth and value creation for stakeholders.


"In launching the company, we are also responding to demand and appetite among investors, in the region and globally, for opportunities that not only deliver solid returns but also provide for significant and measurable ESG impact," remarked Alrayes. 


"Investment in sustainable infrastructure is inextricably linked with social and economic progress and Infracorp is focused on raising and deploying capital to help meet strategic development needs while enhancing economic wellbeing and returns for all stakeholders," he added.


He pointed out that furthermore, spinning out infrastructure assets from GFH will allow the group to focus more on financials assets, while allowing Infracorp to manage and deliver returns from infrastructure and real estate assets which have a longer investment cycle than banking activities. 


"We believe the move will reflect positively on GFH’s results and the quality of our balance sheet. We will also look to list Infracorp on GCC exchange over the next 24 months and issue Green Sukuk, creating even greater value and providing a unique opportunity for investors," he added.-TradeArabia News Service




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