Seef Properties Shareholders Back GFH Vehicle's Move to 50.07% Stake

Shareholders of Seef Properties approved on Monday a transaction that raises a GFH-backed investor's holding in the Bahrain-listed real estate company to 50.07%, through the purchase of 95.1 million shares.

The buyer is Seef Equity Growth Investment, a vehicle established by GFH Partners Fund Management. On completion it will hold 230.3 million Seef Properties shares, according to a bourse filing. The shares changing hands equal 20.67% of the company's share capital. GFH said it will issue further disclosures as the transaction moves forward, in line with applicable laws and regulations.

Independent shareholders pass whitewash resolution

One condition was settled a day earlier. Independent shareholders passed a whitewash resolution by a majority at an extraordinary general meeting on Sunday, satisfying Article 213 of Bahrain's Commercial Companies Law and Rule TMA-3.1.17 of the Central Bank of Bahrain's takeover, merger and acquisition module.

Second-quarter profit falls 36.9%

The ownership change arrives against a softer set of numbers. Net profit for the second quarter dropped 36.9% year on year to $2.4 million. Earnings per share fell 35% to $0.0056, or 2.1 Bahraini fils, from $0.0085 (3.2 fils) a year earlier. Operating profit slipped 20.1% to $6.1 million (BHD 2.3 million) from $7.7 million (BHD 2.9 million).

At the half-year mark, net profit and comprehensive income attributable to shareholders were down 29.7% year on year at $7.2 million (BHD 2.7 million).

Chairman Essa Mohamed Najibi tied the decline to regional developments that have weighed on activity and spending in the company's retail, hospitality and entertainment businesses. He said the company would stay focused on developing assets, running operations more efficiently and widening its revenue base.

Al Liwan leads first-half performance

Chief executive Ahmed Yusuf said Seef kept executing its operational and development plans through difficult market conditions. Al Liwan ranked among the portfolio's best performers in the first half, supported by high occupancy, a growing share of revenue from diversified sources and the arrival of new concepts and brands.

At Seef Mall, the current stage of a phased redevelopment covers construction work, more restaurant and cafe space, upgrades to facilities, and improvements to outdoor areas and walkways. Yusuf said the goal is to keep normal operations and services in place for visitors and tenants for the duration of the building work.

Seef is also moving ahead with a mixed-use development in Dammam, Saudi Arabia, alongside Majd Investment Company. Yusuf said the company will concentrate on operational efficiency, asset values and service quality, and will weigh growth opportunities as market conditions improve.