Press Releases07 October 2018
VCBANK COMPLETES THE DEVELOPMENT OF THE ROYAL HOSPITAL FOR WOMEN IN RIFFA AND ANNOUNCES ITS EXIT
● VCBank sells 69 pc stake in hospital to Amanat Holdings for US$ 39 million
● Royal Hospital for Women set to add new dimension to Bahrain's growing private healthcare sector
● Contributes to social well-being and economic prosperity of Bahrain
Manama, Bahrain - 07 October 2018: Venture Capital Bank (VCBank), a Bahrain-based Sharia-compliant investment firm, confirmed today the sale of a 69 per cent stake in the recently-completed Royal Hospital for Women in Bahrain for US$ 39 million. The acquisition was made by Amanat Holdings, a Dubai Financial Market-listed investment company focused on the GCC healthcare and education sectors. This latest investment exit by VCBank and its retail investors generated a 34 per cent return on the original investment.
Mr. Abdullatif Janahi, Board Member and CEO of VCBank, commented: "This successful transaction underscores the Bank's proven track record of providing shareholders and investors with innovative investments in high-growth non-cyclical sectors. It also highlights VCBank's contribution to attracting new foreign direct investment (FDI) inflows to the Kingdom.
"In addition to expanding and enhancing Bahrain's healthcare sector, and promoting the Kingdom as a medical tourism centre, the Royal Hospital for Women will provide employment and training opportunities for Bahraini nationals seeking a rewarding career in the medical field," he added.
Based on a 'healthcare and hospitality' model that is unique to the region, the Royal Hospital for Women (RHW) was conceived by VCBank to fill an underserved niche in the market for world-class specialist primary and secondary healthcare services for women and children. The Bank managed all aspects of the design, construction and fitting out with meticulous attention to detail, to ensure that the hospital and its facilities met the highest international standards of excellence.
Comprising 65 inpatient beds, RHW will focus initially on the provision of comprehensive maternity facilities extending to pre-natal and post-natal care, in addition to gynaecology.
It will be the only private hospital in Bahrain with a neonatal intensive care unit (NICU).
The hospital has been designed as an exclusive retreat, where patients will receive the highest levels of tailored medical services in a serene and relaxed environment. Covering a built-up area of 10,000 square metres on a landscaped site of 40,000 square metres, it is situated on the outskirts of Riffa.
"The sale of this recently-completed hospital, with its unique patient value proposition, marks the Bank's first investment exit from the regional healthcare sector in which we have developed a particular expertise," Mr. Janahi pointed out. "Following extensive market studies, our business rationale for entering this sector was to cater to the growing demand for premium specialised medical facilities in the GCC operating in compliance with the highest international standards."
VCBank also conceived the idea for the German Orthopaedic Hospital (GOH) in Bahrain, which opened in 2010. GOH provides a more practical and cost-efficient alternative for patients from Bahrain and the region who previously had to travel to Germany for diagnosis of orthopaedic-related illnesses, treatment and rehabilitation. Staffed by in-house German consultants and specialists, the hospital's advanced support infrastructure includes physiotherapy, rehabilitation and osteopathy services.
"These healthcare investments reflect VCBank's enduring commitment to contribute to the social well-being and economic prosperity of the Kingdom of Bahrain," explained Mr. Janahi. "As well as improving the quality of life for the local community through enhanced healthcare facilities, these two specialist hospitals provide employment and training opportunities for Bahraini nationals. RHW will employ 250 people of whom 150 will be medical practitioners; while GOH currently has 79 staff comprising 49 medical professionals. It is expected that Bahrainis will occupy over 40 per cent of these jobs.
Mr. Janahi also pointed out that the sale of the Royal Hospital for Women illustrates how VCBank supports the efforts of the Kingdom's leadership and the Economic Development Board in attracting additional foreign direct investment (FDI) inflows into Bahrain. "When exiting from a particular investment, the Bank takes great care in identifying the most suitable organisations that can demonstrate proven expertise and experience in the relevant sector. In the case of the RHW exit, Amanat Holdings more than met these criteria."
Established and listed on the Dubai Financial Market (DFM) in 2014, Amanat Holdings is the largest integrated healthcare and education investment company in the GCC. Its high-quality healthcare investments in Saudi Arabia and Bahrain range from general hospitals, specialised hospitals and clinics, to pharmaceutical manufacturing and distribution.
- Ends -