(Reuters) Bahrain-based Islamic investment house Arcapita posted a $159 million second-quarter loss due to a slump in income from placement fees and lower asset valuations after property markets plunged.
The company said on its website its income in the quarter ended Dec. 31 fell to $12.6 million from $101.8 million a year earlier, when it posted a quarterly profit of $30.6 million.
Bahrain’s investment houses such as Arcapita relied on fees for placing money with real estate projects and private equity deals, a market that collapsed following the burst of Dubai’s real estate bubble in 2008.
Rival Gulf Finance House GFHB.BH(GFHK.KW) (GFH) posted a $728 million loss for 2009 and escaped default on a $300 million loan this month by striking a deal with lenders to roll over a third of the loan by six months. [ID:nLDE61F234]
Arcapita, which last June asked for its BB-/B rating by Standard & Poor’s to be withdrawn, said it reduced valuations on its assets by $92.8 million during the second quarter.
It said in January it had sold U.S. sports gear maker Yakima that it had bought in 2001 for about $90 million, but declined to disclose the return for investors from the exit. (Reporting by Frederik Richter, editing by Will Waterman)