Muharraq, Bahrain: Inovest Group today announced the sale of its ownership stake in Tala Property Development Co. W.L.L through a share purchase contract with Ossis B.S.C (c). Under the terms of the agreement, Inovest has sold its majority (60%) holding in the project to Ossis, for a value of approximately US$7.7 million, which will now retain complete ownership of Tala Island. The decision to exit the project comes after Inovest achieved its objectives by successfully completing the development in 2007, selling 100% of its residences, and managing its facilities and operations till date.
Tala Island, an exclusive US$ 120 million cosmopolitan community development located at the heart of Amwaj Islands and covering an area of 110,000 square meters, was developed by Inovest’s real estate and development arm, Tameer in collaboration with Ossis, in 2005 and was completed in 2007. The project is comprised of 85 beach front villas and 590 apartments built in a Spanish-Mediterranean style. The development hosts private swimming pools, a health club and sports centre, tennis courts, restaurants and a bustling retail area. Tala Island has been hailed as one of Bahrain’s best development projects and has been awarded accordingly. Today, Tala is a fully occupied residential community, and is home to both Bahraini’s and expatriates that enjoy the project’s amenities. Tala Island is a testament to the Group’s real estate investment and development capabilities with Tameer managing the project in its entirety; from concept development and design, to infrastructure development and construction, through to property sales and ongoing project and facility management.
The divestment proceeds have been anticipated in the Group’s first quarter 2016 financial results and are part and parcel of the Group’s strategy towards the sale and exit of legacy investments. Speaking on the occasion, Mr. Murad Al Ramadan, CEO of Inovest, noted, “This transaction crystallizes the value contribution of Tameer within the real estate investment and development community and strengthens the Group’s financial position. We are extremely proud of our accomplishments within Tala Island, and of the Group’s ability to manifest our vision for a beachfront community into a thriving reality. Real estate investment remains a central theme in our forthcoming strategy, and we expect to see this same level of diligence, aptitude, and return applied to our future real estate prospects.” Mr. Al Ramadan further hailed the relationship between Inovest and Ossis, “We are pleased to hand Tala Island into the care of Ossis, they have been a strategic partner in the development of Tala Island, and our partnership with them has always been based on mutual trust, respect and regard for their professionalism; we look forward to maintaining this rapport in future endeavors.”
On behalf of Ossis, Mr. Jameel Al Matrook, Managing Director of the company, affirmed their pleasure at the acquisition, “As partners in Tala Island, we have been privy to the development and growth of the project since inception. Our joint venture with Inovest was mutually beneficial, and a solid precedent for future partnerships between us. It is a natural decision to bring Tala Island into the investment fold of Amwaj, the decision is a best fit with our corporate strategy, and with our business and brand philosophy, as well as with our plans for greater facility and operational management within the Amwaj community.”
The sale is considered an indicator of general real estate market improvement and the possible return of investor confidence.