Bahrain’s GFH inks JV deal to kick-start $3bn Tunis project
GFH (Gulf Finance House), the Bahrain-based financier, has announced that it has signed a joint venture with France’s ‘Alliance International Holding’. This JV is likely to kick-start the Tunis Bay project, part of the overall $3 billion Tunis Financial Harbour project.
Alliance International Holding is a French consortium that specialises in the building of ‘golf course’ projects and new community developments.
It said it has signed a deal with the GFH-owned Tunis Bay Project Company which will see more than 800,000 m² of land developed into a golf course with surrounding villas and apartments.
Construction work by the joint venture will start next year as part of the first phase of the Tunis Bay development.
Gulf Finance House said last month it has completed a capital reduction plan, a move that helps the islamic investment firm to cut accumulated losses.
It had received approval from the Bahraini authorities for the step, which reduces the nominal value of its shares by 13.8% to $0.265 per share from $0.3075, it said. As a result, paid-up capital had been reduced to $837.9 million from $972.3 million.
GFH suffered badly during the global financial crisis, needing several debt restructurings, as it struggled to contend with a slowdown in its main advisory business and the debt it had taken on during the boom years.