Shari’a Compliant Equity Investment
Shari’ah compliant Bahrain Investment Bank, Seera has completed an investment into the UK dementia care sector by means of an equity investment in a housing development in London.
The development, when completed will provide circa 115 housing units providing specialized care to dementia sufferers.
Mr. Abdulla Janahi, Seera’s Chief Executive Officer commented, “The project will be developed on a 1.19 acre freehold site in Clapham, London over a three to four year period. The units are expected to be sold over the development period with distribution of substantially all the originally invested capital in the 4th year of investment together with a part of the profits. Upon completion of the development the project will then be held to benefit from the ongoing care revenues. The project company is expected to be sold once steady state is reached in a year or two following return of initial investment to investors. The investment over the holding period is expected to generate very attractive risk adjusted returns for Seera and its investors.”
In 2012 Seera completed a financing facility for a new purpose built student housing project and commercial property in central London.
Islamic Finance and UK Real Estate
Last month UK Shariah-compliant Gatehouse Bank announced the acquisition of Fountainbridge, a student accommodation property located in Edinburgh, United Kingdom for £20.0 million, and prior this had completed of terms for financing of the Blakelands Industrial estate located in the Milton Keynes area of the UK.
Islamic finance investors are taking a keen interest in UK real estate by funding a number of high profile projects.
Europe’s tallest building, the Shard in London was financed by Qatari consortium that acquired an 80% stake for £150m (€192m), whilst nearby, in the prime central London real estate territory, a consortium comprising Qatari Diar Real Estate and Investment and the Candy brothers’ CPC Group bought the 5.2-hectare Chelsea Barracks site for £959m.
In 2012, a Malaysian consortium bought for £400m the 16.8-hectare Battersea Power Station site, which had been derelict for three decades. Work is now under way on a massive 3,444-home scheme that will create a new city district.
