Bahrain Bank Buys in London

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Bahrain-based Venture Capital Bank has purchased a freehold residential development in Central London, the Islamic bank's first real estate transaction outside of the Middle East and North Africa.

The residential development is located in the Mayfair Conservation Area, close to Berkeley Square and Grosvenor Square. Mayfair Chambers includes a building under development for six luxury residences with an expected delivery date of April 2014, the bank said in a statement.

Home prices in central London have been skyrocketing in recent years, in large part due to interest from the Middle East, although there have been recent signs of a slowdown.
 
"Close to Oxford Street and one of the finest shopping streets in London; Bond Street, the development is underpinned by its prime location [in] Mayfair, which is considered to be one of the most prominent areas in London," VC Bank CEO Abdullatif Mohamed Janahi, said in a statement. 

"This acquisition adheres to VC Bank's investment strategy which seeks to diversify the investment portfolio geographically and industry wise, while targeting high quality, stable assets with attractive valuations." 

VC Bank is the first Islamic venture capital bank in the GCC and MENA region, according to the bank website. The bank recently reported a total revenue of $39.6 million with a net profit of $20.2 million for the 15 month period ending March 31. This compares to a loss of $58.7 million for the calendar year 2011.