Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank in the City of London has completed its third student accommodation deal this year, with the 28,895,000 acquisition of a 8,414sq m, newly built student accommodation property in Oxford, UK. This latest transaction completed in collaboration with GSH Kuwait, follows the acquisition of two earlier student accommodation properties in Loughborough and Liverpool last April, and brings the total value of Gatehouse Banks real estate portfolio in excess of 150 million.

The property has been purchased at a net initial yield of 6.73%, and will deliver an average cash yield of 9.3% per annum, with the university guaranteeing the term time rent and the developer, Berkeley Homes plc guaranteeing the summer vacation rent for the first five years.

Chairman of the Board of Directors at Gatehouse Bank, Mr Fahed Boodai commented:

Gatehouse has a proven track record in securing the best investment opportunities for its investors, clearly shown by the acquisition total of 5 star deals within the last 10mths across the commercial office, student and healthcare sectors. 

The latest Oxford Brookes acquisition showcases the teams superior knowledge of the UKs real estate market dynamics combined with its capability to source high quality asset allocations. These investment opportunities are acknowledged by our investors who have been swift to take up these high yielding income producing opportunities.

Leading a team of real estate specialists at Gatehouse, Philip Churchill, Executive Vice President and Head of Real Estate said:

Student accommodation is an extremely well-established sector in the UK, worth 6.5bn. It is also one of the few sectors experiencing rental growth at the moment, with average increases of 5% per annum over the last six years. When combined with the inherent supply and demand imbalance, which guarantees nearly 100% occupancy rates, student properties make a particularly attractive investment option and we see it as an area of considerable growth for the bank. 

The Oxford property comprises 350 en-suite rooms in apartments with independent kitchen and lounge facilities, as well as 24 self-contained studios constructed around a central courtyard.  Of its 18,035 students, Oxford Brookes is currently only able to accommodate 19% in halls of residence, and so this latest property will meet significant local demand.

The property, developed by Berkeley Homes, is subject to a Nominations Agreement with the Oxford Brookes University. The UKs largest operator of privately managed student accommodation, CRM, will provide day to day management.

-Ends-

Gatehouse Bank
Gatehouse Bank operates as a Shariah-compliant wholesale investment bank based in the City of London focusing on: Capital Markets, Treasury, Real Estate; Structured Trade Finance and Syndication, Asset Finance and Shariah Advisory services.

For more information please visit our website www.gatehousebank.com

Contact information:
Rohan Shanker
+973 17234553
rohan.s@actionprgroup.com  

Press Release 2010