Bahrain-based Khaleeji Commercial Bank has announced its latest investment fund, Global Logistix Navi Mumbai Investment Company, with a target capital of $430 million. The fund has been established to invest in India’s first integrated logistics city project on a 400-acre site in Navi Mumbai. The initial development projects supported by this investment fund will include the construction of warehouses, control building, maintenance depot, staff accommodation, parking areas, and various other amenities.
“The project is aimed at providing all logistical services in one fully integrated park. This will enable potential and existing businesses the opportunity to increase their operating efficiency, market exposure, and to minimize their operational costs,†said Ebrahim H. Ebrahim, CEO and Board Member of Khaleeji Commercial Bank the launch of the fund.
Khaleeji Commercial Bank (KHCB), one of Bahrain’s leading Islamic banks, is 60 per cent owned by a group of regional strategic investors and 37 per cent by Gulf Finance House, who is its founding shareholder. KHCB had also recently announced a $163.5 million fund, named Danat India Investment Company, to invest in an unnamed real estate development project near New Delhi.
Indian real estate market seems to be a favourite with Gulf-based investment firms. In October 2007 Gulf Finance House committed $630 million for Energy City India, an infrastructure project being set up in Navi Mumbai, Maharashtra. In March this year, Abu Dhabi Investment House (ADIH) also announced the launch of India Entertainment City (IEC) fund, which would be financed through a $400 million Sharia-compliant fund.
There have also been some other funds launched by banks based out of Gulf. National Bank of Kuwait launched an India-focused private equity fund of funds with minimum investment of $500,000 a person. Last month Kuwait-based Global Investment House, Dubai Islamic Bank and Millennium Capital announced a $500 million Shari’a-compliant Islamic Buyout Fund by the Central Bank of Bahrain.