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Dubai-based GFH Capital is snapping up central London property in search of attractive yields and may launch technology funds with a U.S.-based partner as it seeks to capitalize on business startups in the GCC. GFH Capital has been buying London properties with values between $15 million and $50 million. It is currently looking at purchasing a pair of properties for about GBP20 million, according to chief executive David Haigh. Those investments aim to exploit good prospects for returns on luxury flats in central London. In addition to its London property strategy, GFH Capital is looking at launching private equity funds that seed startups in the region. Besides, the investment in Leeds, Haigh said, was doing well.

Capital Intelligence (CI) has assigned Gulf Finance House (GFH) Long and Short-Term Ratings of 'BB-' and 'B', respectively. The ratings are supported by a significant reduction in leverage as a result of debt repayment and increases in equity, the successful restructuring of debt with an extended repayment period, and the return to profitability in 2012. The factors currently constraining the ratings are the forced debt restructuring in 2012, tight liquidity (although this improved in H1 2013), an encumbered asset base, a small balance sheet coupled with single name and sector concentrations in the asset base, reliance on deal flow for income generation, and the still challenging investment environment.In view of the improvement in both liquidity and leverage in H1 2013, a 'Positive' Outlook is assigned to the ratings.

Bahrain-based Gulf Finance House has announced a net profit of $4.2m for the half year of 2013. Net profit fell compared to $5.7m in the corresponding half year period in 2012 despite a drive to reduce costs. Second quarter net profit also dropped to $2.7m from $4.7m for Q2 2012. Total income for the second quarter was $13.4m compared to a total income of $19.7m for the second quarter of 2012. It said income was primarily generated from management fees from funds under management, investment income and recoveries. It added that operating costs for the half year period reduced by 27 percent to $19.6m compared to $26.9m for the prior year period, underlining ongoing efforts in the streamlining of operations. GFH's new strategy calls for it to become more involved in its investments, and to hold projects until completion rather than passing them to third parties to develop as was done in the past.

Bahrain-based Islamic investment bank Gulf Finance House (GFH) reported a 50 per cent increase in net profit at $1.5 million for the first quarter this year. Total income for the period was at $11.1m. Income was primarily from fees from funds under management and a profit of $4.9m from repurchase of debts at discount. The bank's strategy of streamlined operations continued to bear results with a 30pc reduction in operating costs for the current quarter at $8.3m compared with $11.9m in first quarter of last year. GFH acting chief executive Hisham Al Rayes said GFH Capital undertook due diligence on a number of potential strategic investors for Leeds United FC and exit arrangements for Mega City Navi Mumbai focusing on profitable growth.

Bahrain-based Islamic investment bank, Gulf Finance House (GFH) has secured approvals from 32 syndicates for the restructuring of WestLB Murabaha facility. GFH also obtained approval from its sukuk holders to restructure its outstanding debt amounting to $105m. All debts are expected to mature in 2018 and provide a two-year grace period for the principal repayment amount.

Pakistan's Prime Minister Raja Pervez Ashraf emphasized the close relations between Bahrain and his country and praised the Gulf Finance House Bahrain for doing well financially. Moreover, he drew the attention of Esam Yousif Janahi, Chairman and Founder of Gulf Finance House, to huge investment potential in Pakistan and expressed the need to invest in energy. He said that there were a good wind corridor, hydel potential and coal reserves. Jahani said that his company was examining the possibility of investing in energy sector in Pakistan. He further said that the investment policies of Pakistan were conducive and attractive for foreign investors because of rewarding returns on investments.

Gulf Finance House (GFH) yesterday reported a net profit of $10.03 million last year as compared to $0.38m in 2011. The profitability is attributed to profitable investments as well as significant restructuring, including the Leeds United football club investment and others. Operating profit before provisions for the year saw an increase of 140 per cent to $20.43m. Additionally, the bank saw a 31pc year-on-year reduction in operating costs mainly due to streamlined operations and reduced facilities. Moreover, GFH settled more than $100m of debt, which will now all mature gradually by 2018 and therefore the bank has been in a stronger liquidity position.

Gulf Finance House (GFH) has issued a statement denying the suspension of the firm’s Acting CEO Hisham Alrayes. GFH clarified that its ex-CEO Mr Ted Pretty and Ex-Deputy CEO Mr Mohd Al Nusu were suspended for a period of three months. Both have already resigned from the company. According to the statment, the CMA had not imposed any financial penalty on the firm.

Bahrain-based Gulf Finance House (GFH) is studying options to merge its affiliate, Khaleeji Commercial Bank (KCB), with other Bahraini banks. It did not say which Bahraini banks it was considering as merger partners.

GFH Capital is a private equity firm based in Dubai, UAE. According to its website, the company has been highly successful investments and fund management over the past ten years. It also points out that it has handled investments worth more than eight billion US dollars in 25 different countries. Its funds to some extent come from the Dubai Islamic Bank, the World Bank and the Islamic Development Bank. The Gulf Finance House is an investment bank Bahrain. It completely owns GFH Capital Limited. Just as GFH Capital, the Gulf Finance House has made numerous successful investments worth billions of American dollars. GFH Capital has made its bid for Leeds United on its own and will handle the deal independently of Gulf Finance House.

The takeover of Leeds United Football Club by GFH Capital raised disputes on the level of Shari’ah compliance associated with the deal. A statement by David Haigh, deputy chief executive officer and chief operating officer of GFH Capital, stumbled upon rather negative reception. He compared Leeds United to young Pamela Anderson in terms of good shape and future perspective. Also, the fact that a soccer club where alcohol, gambling and pork feature in the mix is subject of acquisition, the question arises whether it is at all compliant with the Shari’ah principles.

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The chief operating officer of Bahrain-based Islamic investment bank Gulf Finance House - Haider Al Majali - has resigned. At the time of going to press, no name of a new COO has been mentioned. Meanwhile, the country's position as an Islamic finance capital of the GCC is strongly questioned. Ethnic conflicts and misuse of tear gas by the police against vocal opponents to the ruling regime are the main threat. The financial position of Bahrain depends on the development of its domestic situation.

Gulf Finance House has announced that the Tunis Financial Harbour has started the prequalification process for prospective contractors.
This comes after an announcement made by the Government of Tunisia in support of the TFH project, allocating Tunisian Dinar 50 million to the completion of major and strategic infrastructure works in relation to access and roads ?to TFH.
Included in the master plan are a variety of residential and leisure facilities including a marina, a residential complex with luxurious villas and an 18-hole championship golf course.

Gulf Finance House is on a questionable way of rise and fall because of its overextension with ambitious real estate adventures before the collapse of the world economy in 2008.
The $11.2m second quarter loss seems to be because of higher finance expenses and exchange rates.
The paring of the bank's losses turned around with a modest profit of $700,000 for the first half of the year with total income rising 27% to $32.8m on the back of asset sell-offs, including exits from investments in Bahrain Financial Harbor, Qinvest and Saudi Real Estate Company which raised some $300m and the settlement of liabilities.

Bahrain's Gulf Finance House GFHB.BH (GFHK.KW) Chief Executive Ted Pretty, who cut costs and rolled over debt but failed to kick start revenues, has left the cash-strapped firm.
A second source confirmed the departure. The sources said that disputes with GFH's Executive Chairman Esam Janahi were the main cause for his departure.
GFH denied, however, that Pretty had left the company for good.

A number of financial institutions in the Middle East still try to recover from the effects of the global financial crisis. One of the most severely affected institutions was Gulf Finance House (GFH), which has been undergoing some radical restructuring over the last 12 months. Ted Pretty, brought in from Macquarie Capital in late 2009, has already slashed staffing costs by about 66%; sold off some of the company’s assets to realise much needed capital and restructured debt, giving the company more time to meet its debt obligations.

GFH shareholders approved plans to raise up to $500 million through a convertible Murabaha to strengthen capital base and fund growth strategy, a 4:1 share consolidation and other capital reduction measures, and an increase in GFH’s stake in Khaleeji Commercial Bank.
The GFH growth strategy will focus on the creation, development and management of Islamic financial institutions offering a range of financial products and services to corporate and retail clients, enabling a more stable business model of recurring revenues.

Gulf Finance House is restructuring after the global financial crisis froze debt markets, hurting companies and investors in the region.
Shareholders have approved a 1-for-4 reverse stock split, a reduction in paid up capital and the issuance of an equity- linked convertible murabaha of as much as $500m.

In order to rescue Gulf Finance House from the brink of bankruptcy and finance the shareholders have approved a plan to raise up to $500 million.
They also agreed to an asset swap between GFH and its chairman, Esam Janahi, under which Mr Janahi is to transfer his entire 10 per cent stake in Khaleeji Commercial Bank to GFH in return for 100 per cent of Al Areen Leisure and Tourism plus $3m in cash or GFH shares.
The transfer would raise GFH's stake in Khaleeji to 47 per cent, or nearly a controlling interest.

"The Private Equity Calamity

This paper dissects the balance sheet and business model of Gulf Finance, and scrutinizes the existence of a "pre-exit premium" in their activities - on top of the usual exit fees and/or performance fees. The study suggests that this practice (uncommon even for conventional Private Equity businesses - much less for an Islamic Private Equity house) was pioneered by GFH and it is this same practice that brought them down to their knees. "