May 02 2012
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Saudi - UK GBP 100 million Fund closes with first Real Estate transaction
Sidra Capital and Gatehouse Bank acquire The Cooperative Group Distribution Centre in Cambridge, UK for GBP 23.55 million
Jeddah, Saudi Arabia: Sidra Capital (Sidra), a CMA regulated Shariah compliant financial services company based in Saudi Arabia and Gatehouse Bank (Gatehouse), an FSA regulated UK-based Shariah compliant bank specialising in UK real estate, have announced the first closing of The Sterling United Kingdom Real Estate Fund (SURF) and their first property acquisition in Cambridge, UK at GBP23.55m.
SURF aims to complete purchases in the Shariah compliant commercial real estate in the UK. The Fund will acquire a diverse real estate portfolio which covers the office, retail, logistics, student accommodation and light industrial sectors, to reach its target equity size of GBP 100 million.
SURF has successfully deployed its fund capital with their first property acquisition in The Cooperative Group Distribution Centre (property) located in Huntingdon, near Cambridge, UK for GBP 23.55 million. The property will produce an average annual distribution yield of circa 8.40% over 5 years and has been fully let to Somerfield Property for a 35 year term from 1990. The 23,844 square meter property was secured at a discount to the original quoting price and will provide SURF investors with a significant surplus over the fund's target annual distribution of 6.50%.
"As one of the most mature, transparent, well regulated and liquid markets in the world, the UK is considered superior to other markets. By diversifying our risk across multiple asset classes, SURF's mixed portfolio will provide an effective hedge against inflation," added Baothman.
"The UK real estate sector provides a compelling investment opportunity, which has arisen following heavy falls in commercial property values due to the impact of the financial crisis. As yields return to the long-term historical average and rental growth establishes itself, SURF's real estate investments should generate solid returns for its investors," added Thomas.
Gatehouse continues to excel at delivering Shariah compliant real estate investment solutions. This is reflected in its track record of performance, delivering over $500 million in real estate acquisitions in two years and new investor uptake in transactions by GCC high-net worth and institutional investors.
Established in 2009, as Aayan Capital the company recently changed its name to Sidra Capital and is licensed by the Capital Market Authority of Saudi Arabia (CMA) to carry out investment banking and asset management activities.
Gatehouse Bank operates as a Shariah-compliant wholesale investment bank based in the City of London focusing on: Real Estate, Treasury, Wealth Management and Shariah Advisory services.
For more information please visit our website www.gatehousebank.com
Sidra Capital, a CMA regulated Shariah compliant financial services company based in Saudi Arabia with extensive experience in real estate fund activity, has partnered with Gatehouse Bank, an FSA regulated UK-based Shariah compliant bank specialising in UK real estate. Through their combined expertise, these institutions have brought The Sterling United Kingdom Real Estate Fund (SURF) to the investor market with a view to reaching a target equity size of GBP100million. SURF is registered with the CMA in Saudi Arabia. For more information please visit our website www.sidracap.com
© Press Release 2012
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