BAHRAIN. Bahrain based Instrata Capital, a regulated asset management firm specializing in infrastructure investments, has recently closed the acquisition of a stake in Oman’s Sembcorp Salalah Independent Water and Power Project (IWPP) for the Bunyah GCC Infrastructure Fund (Bunyah) from Oman Investment Corporation (OIC).
The Sembcorp Salalah IWPP is a 445 Megawatt, 15 Million Imperial Gallons per Day (MIGD) combined cycle gas turbine power and water desalination plant located in the southern region of Salalah. It is currently under construction and is forecast to be completed by April 2012.
The project has been developed on a Build, Own and Operate (BOO) model, and will play an important part in meeting demand in one of Oman’s key growth regions. The entire output of the project is contracted under a long term power and water purchase agreement with Oman Power and Water Procurement Company (OPWP).
“The Salalah IWPP is an important infrastructure asset for the Sultanate of Oman, and a strategic addition to our existing investment portfolio in the region. The current economic uncertainties have led to an increased focus on infrastructure investment which delivers stable cashflows to investors. ” said Mr. Suhail Hajee, Chief Executive Officer at Instrata Capital.
Mr. Khalid Alshakrani, Managing Director at Instrata Capital, said, “2011 was a challenging year for investment in the region. With this backdrop we are very pleased to have closed the Sembcorp Salalah acquisition. Notwithstanding a challenging economic environment, demand for additional infrastructure projects remains constant driven by strong underlying fundamentals including population and GDP growth and we are confident that there will be significant opportunities for additional infrastructure investment in 2012 and beyond.”
Mr. Alshakrani continued, “At Instrata Capital, we are proud of our expertise and understanding of the infrastructure asset class which is demonstrated by our successful track record of investment in infrastructure projects.”
Instrata Capital’s existing investment portfolio also includes two significant IWPP investments. In June 2009 Instrata Capital closed the acquisition of a stake in the Al Dur IWPP in Bahrain and in August 2010 Instrata Capital closed the acquisition of a stake in the Barka 1 IWPP in Oman.
Based on the success of Bunyah, Instrata Capital’s initial fund, and growing investor appetite for stable investments capable of attractive returns, Instrata Capital is considering launching a second GCC/MENA and Turkey focused fund following regulatory approval. This fund will also focus on infrastructure assets making use of Instrata Capital’s strong investment pipeline.
About Instrata Capital:
Instrata Capital is a regulated asset management firm specializing in infrastructure investments in the Middle East and North Africa (MENA) region. Established in 2007 and regulated by the Central Bank of Bahrain, (Business Investment Firm, category license 2) the Instrata Capital team brings together a deep understanding and considerable experience of both international and regional infrastructure investment.
With an active investment portfolio across the MENA region, Instrata Capital’s team identifies, structures and manages infrastructure investments fundamental to regional economic development. Instrata Capital is backed by leading regional shareholders including the Kuwait Investment Company S.A.K. and Sage Capital Management W.L.L.