Gulf Islamic Investments, a leading Shariah compliant global investment company based in the UAE, with assets under management in real estate, private equity and venture capital sectors, has announced a majority investment in OFFA, the UK’s first Shariah-compliant bridge financing provider for the real estate market.
The investment will further expand OFFA’s real estate financing proposition through the development of short-term and longer-term real estate financing products, a statement said.
Pankaj Gupta, Co-CEO of Gulf Islamic Investments, said: “OFFA is a highly attractive bridge-financing house that benefits from strong net profit margins and operates in a rapidly growing market that is currently worth £5.1 billion.
“The company is based in the Birmingham area of England, which has the largest Muslim population in the UK, and is the only Shariah-compliant bridge financer in the UK. The value of bridge financing in the UK grew 8.5% in the first three months of 2022, and we believe the combination of property prices, demographics and OFFA’s unique market position makes this a compelling investment opportunity.”
Mohamed Al Hassan, Co-CEO of Gulf Islamic Investments, said: “This key investment in a high potential market reflects our commitment to identifying attractive opportunities across the globe. Further to our recent acquisition of the digital bank, we are in the process of continuing to seek out attractive opportunities in the same space and in the direct credit sector to grow sustainable investor and stakeholder value.”
Bilal Ahmed, CEO of OFFA, said: “This significant investment by Gulf Islamic Investments will provide us with the capital to expand our asset book and product range. We carefully evaluated potential investors and selected GII for its commitment to genuine partnership, true understanding of Shariah investment, proven international track record and strength of their fundamental experience.”
The transaction is the latest in a series of GII investments in alternative assets such as direct credit, which offer distinct risk-reward characteristics and attractive diversification from traditional fixed income and equity asset classes.
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