Fajr Capital buys Dubai International Capital’s $300m MENA infrastructure fund stake

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World longest outdoor full colour LED scrolling screen at the Dubai International Financial Centre building in Dubai, UAE. Photo – Klr_ali/Panoramio.com

Dubai International Capital (DIC), the private equity arm of Dubai Holding has sold its stake in a $300 million Middle East North Africa infrastructure fund to Islamic investment firm Fajr Capital, it was announced on Monday.

Fajr is backed by prominent investors such as Abu Dhabi Investment Council and Malaysia’s state investor Khazanah Nasional Berhad. In its statement, the company said it will manage the fund along with its two other partners HSBC Holdings and Waha Capital.

All the three partners will have equal ownership stake in the fund post the deal, one source familiar with the matter told Reuters.

The MENA Infrastructure Fund, a vehicle for investment in Middle East and North Africa’s infrastructure and energy projects, was formed in 2007. At the time of launch, the three sponsors of the fund had committed $50 million each as initial investment.

The fund has investments in Alexandria International Container Terminals (AICT) and Muscat-listed United Power Co, according to its website.

DIC, a unit of the conglomerate owned by the emirate’s ruler, aims to raise more than $150 million from asset sales in 2012, its chief executive said in April.

It sold hotel operator Ishraq Dubai to Almulla Group in October last year and exited its 45% stake in valve maker KEF Holdings Inc.

The firm, which was hard hit during the financial crisis due to use of excessive leverage in its investments, had to hand over its ownership of UK budget hotel chain Travelodge as part of a debt restructuring deal.

Fajr Capital has $700 million in committed capital, it said in the statement.

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