Addax Bank Completes Sale of Florida-based Tuscany Reserve

Date : 22 February 2011

Sale reaffirms Addax’s commitment to strengthen its focus on the GCC region

Manama, Kingdom of Bahrain, 22 February 2011: Addax Bank (“Addax”), a Bahrain-based wholesale bank serving the needs of the GCC region, has successfully completed the sale of Tuscany Reserve (Florence Gardens), a highly prized and award-winning 452-acre golf course community in Naples, Florida.

Mr. Wael Aburida, Acting Chief Executive Officer and Board Member of Addax Bank, commented that "Addax’s successful exit from Tuscany Reserve indicates the Bank’s ability to react to changing market conditions in the best interests of its shareholders and investors.”

Tuscany Reserve is considered one of the leading developments in Southwest Florida with world class infrastructure and luxury homes to complement the acclaimed golf course designed by Greg Norman and Pete Dye. The development was acquired by Addax in May 2008 and Addax continued to fully operate and maintain Tuscany Reserve since acquisition to preserve its quality and uniqueness. “We decided early on that it was important to maintain and enhance the world class characteristics of Tuscany Reserve in order to preserve the value,” said Mr. Aburida. As a result, the turnkey condition of the property made it the crown jewel of residential real estate development opportunities in Southwest Florida. Therefore, interest in Tuscany Reserve from potential partners remained high despite the global real estate downturn.

After carefully assessing its options, Addax Bank successfully concluded the sale of Tuscany Reserve to Kitson & Partners (“Kitson”). “We are confident in the ability of the Kitson team to achieve the full potential of this exceptional community,” added Mr. Aburida.

Kitson is a Florida based real estate investor and developer that has successfully developed and managed several large-scale master planned communities, both in Florida and the Northeast United States over the past eighteen years. “As the economy rebounds we are confident Southwest Florida’s housing market will lead the way,” said Mr. Syd Kitson, Chairman and CEO of Kitson.  “Real estate always comes down to location – and Southwest Florida remains one of the best places to live in the country.”

Thomas M. Hoban, Managing Partner and an owner of Kitson added, “The Naples market is largely built-out. There are very few projects that can offer new home construction opportunities to homebuyers in this market over the next three to five years. With entitlements for up to 799 new homes, a world class golf course and significant infrastructure already in place, Tuscany Reserve is extremely well-positioned to meet the growing demand in the marketplace and emerge from the downturn as one of premier communities in Naples.”

Mr. Aburida concluded, “The sale of Tuscany Reserve allows us to refocus our efforts on our core home markets here in the GCC.  We are committed to working with our regional clients and portfolio companies in key sectors such as financial services, education, and hospitality to help them continue to build and grow their operations throughout the region.”

About Addax Bank
Founded in 2003, Addax Bank is a leading financial institution based in the Kingdom of Bahrain and regulated by the Central Bank of Bahrain.  Addax Bank’s principal lines of business include private equity, real estate, corporate and restructuring advisory and private placement.  Distinguished by its pioneering transactions, the Bank aims to provide its investors and shareholders with unique and attractive opportunities in the region which generate superior returns and create long-term shareholder value.

About Kitson & Partners
Kitson & Partners was founded in 1992 and currently owns approximately 21,000 entitled residential units, 6.2 million square feet of commercial entitlements and 1.6 million square feet of existing retail shopping centers in Florida.  Kitson & Partners received a substantial entity-level equity investment in 2006 which has enabled the company to continue pursuing real estate opportunities throughout the downturn.  The company’s pension fund backing provides Kitson & Partners with significant financial strength and allows the company to take a long-term view of the market.  Kitson & Partners patient and disciplined approach to investing in high-quality properties appears to be paying off.

For additional details please contact:

Nada Al Alawi, AVP-Marketing & Corporate Communications
Addax Bank

Lisa Hall
Kitson & Partners   
+1 850.681.3200