Abu Dhabi Investment House (ADIH) has announced the exit of The Beirut Gate Fund, that financed the purchase, master-planning and full entitlements of eight plots of land as a mixed-use development in the Solidere area in downtown Beirut.

'This exit reiterates ADIH's ability to deliver as it promised especially during a time of tough global economic climate and after long political unrest in the country,' ADIH chief executive officer Fawaz Ali Al Jowder said.

'Although this inherently caused a drastic price reduction in the real estate market, economic indicators are now showing signs of recovery over the second part of this year due to the stabilisation of the political scene, increase in tourism and the formation of the new government, all of which contributed to the resurgence of confidence among the business sector.

The Beirut Gate Fund, incepted in early 2006, received significant demand from local and regional investors given Lebanon's economic boom specifically in the real estate and tourism sectors at that time.

The project comprised eight plots of land with a total foot-print area of 21,448 sq/m and a built-up area of 178,500 sq/m offering residential, commercial and retail opportunities.

The unexpected war in the middle of that that year was destructive to Lebanon's infrastructure, economy and political environment, ADIH said.

Sale of the plots was affected as political opposition groups staged demonstration camps lasting for almost two years on the project lands, followed by the unforeseen global economic crisis, it added.

The election of the new parliament and appointment of the new government this year, political and economic stability resurfaced sparking renewed interest in the real estate sector from local and international developers.

ADIH has previously exited its investors from the Lagoon fund with a rate of interest of 30 per cent and a two-year early exit from Al Arabi Private Equity Fund at a 20.2pc IRR, above the projected figure.

For its 2008 fiscal year, ADIH distributed 40pc cash dividends to its shareholders.-TradeArabia News Service