Qannas Investments Limited (QIL) announced that it will pay a special dividend of 11.5 cents per share to shareholders after completing four successful exits with a total value of Dhs116.7m.
QIL is a closed-ended investment company managed by ADCM Ltd., the investment management arm of Abu Dhabi Financial Group (ADFG), and listed on the AIM market in London.
QIL has capitalized on a strengthening macroeconomic climate in the GCC region over the last 18 months, which has been led by the return of investor confidence in the construction and real estate sectors. In February 2013, QIL sold its holding in Waha Capital, an Abu Dhabi-based investment company, yielding a return of 24% in just four months.
In the second quarter of 2013, QIL invested in a plot of land on Reem Island (Abu Dhabi) with permission for a residential development at one of the best locations in Abu Dhabi. Early in 2014, the company sold the land for almost double the acquisition price. QIL exited its position in RAK Petroleum, an oil and gas company focused on the Middle East and Africa in December 2013, generating a return of 73% in 21 months.
Most recently, in May 2014, QIL announced that Sheffield Holdings Limited, the developer of Marina 101, had repurchased its holding in the property in accordance with the original sale and repurchase agreement. QIL, along with the co-investor, received a return of 51% on its investment. QIL has now exited the majority of its investments made with the proceeds from its original fund raise, achieving a cumulative internal rate of return of approximately 35%.
Jassim Alseddiqi, Chief Executive Officer of ADFG and Executive Director of QIL, said, “The last 18 months have been an unprecedented success for QIL with four successful exits each delivering a significant return on investment. Given this, we are delighted to announce that later in the year the Company will pay a special dividend of 11.5 cents per share to reward the QIL’s loyal shareholders for their commitment to its investment strategy. With macroeconomic conditions in GCC countries and our key markets remaining favorable, we are very well positioned to build upon our strong track record of delivering a high rate of return and, where it fits with QIL’s opportunistic approach to investing, we will look to explore opportunities globally, especially in the UAE, Eastern Europe and the United Kingdom.”
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