Bahraini investment house Arcapita (ARCAB.UL) said on Monday it made a return of 10 to 12% on its exit of property firm Mapletree Industrial Trust (MAPI.SI), which listed last week.

 

Mapletree’s 940 million Singapore dollars initial public offering (IPO) in Singapore last week was among a string of successful IPOs of property assets in Asia recently, which also included the US$3 billion ($3.87) listing of Singapore wealth fund GIC's logistics unit GFLP.

 

Arcapita said in a statement the IPO had generated exit proceeds of US$435 million for the firm and its investors.

 

“For stabilised real estate assets, we typically target an IRR (internal rate of return) of between 10 and 12%, and the return on this investment is within this range,” a spokesman for Arcapita told Reuters.

 

Arcapita owned 56.6% in Mapletree Industrial, according to a statement from July 2008.

 

The investment company posted a net loss of US$559.4 million for its last business year that ended June 30, as its income from earning fees on private equity and real estate projects slumped.

 

Bahraini investment companies were badly hit by a regional property crash in 2008, after which the market for placing these projects froze and they could not exit some of their illiquid assets.