Unicorn announces successful exits from its two earliest investments
Bahrain, 26 March 2007 - Unicorn Investment Bank (Unicorn) today announces its successful exit from the Bank’s two earliest investments: Unicorn KSA Real Estate Fund I (KSA I) and the Bank’s private equity investment in The Gardens Residential Community (The Gardens) in the United States.
Closed in July 2005, KSA I was the first fund to allow non-Saudi nationals to participate in the rapid growth of the Saudi Arabia residential real estate market. The US$52.5 million fund invested in a residential real estate development in a northern suburb of Riyadh, with the principal objective of achieving medium term capital appreciation and dividend payouts.
In March 2006, the Fund received payment from the sale of a portion of its investment and distributed 41% of the capital along with the profits to investors. The Fund has now distributed the remainder of the capital and profits, providing investors with a final Internal Rate of Return (IRR) of 15.5% per annum vs. the original anticipated IRR of 10% per annum.
Commenting on the Bank’s exit from KSA I, Jacques Bernard, Managing Director of Asset Management at Unicorn, said: “We are very pleased to be able to provide investors with such an outstanding rate of return, particularly given the income-generating nature of the fund. We remain committed to sourcing exceptional investment opportunities on behalf of our clients and will continue to seek ways of allowing our clients to benefit from the sustainable high growth of the regional real estate sector.”
Unicorn has also successfully exited its first private equity transaction, an investment in The Gardens, an assisted living real estate property located in Orange County, California. The Gardens caters to seniors suffering from dementia who require full-time personal and medical care. Unicorn entered into its investment in The Gardens in November 2004, and its exit following a two-year holding period provides investors with the targeted IRR of 21%.
Majid Al-Sayed Bader Al-Refai, Unicorn’s Managing Director & Chief Executive Officer, said; “KSA I and The Gardens were Unicorn’s first two investments, and we are proud to have originated, structured and exited these transactions so soon after we commenced operations in 2004. They attest to our ability to not only source competitive investment opportunities on behalf of our clients, but also to successfully complete the investment cycle, providing strong returns to investors.”