Barwa unit acquires key UK property
Doha, July 1, 2013
The First Investor (TFI), the investment banking division of Qatar-based Barwa Bank Group, has partnered with Investra Investment, a leading British real estate group, to acquire two key properties in the UK.
TFI has partnered with Investra for what is TFI and Barwa Bank Group’s first UK based investment initiative and the first major Shariah-compliant fund in the region of its kind that invests in income-generating property in the distribution, logistics and light-industrial sector of the UK, reported the Peninsula.
The fund’s first property acquisition is a manufacturing warehouse located in Bilston, Wolverhampton, leased to one of the largest manufacturers of highway and road railing and barriers, for an unexpired lease term of at least 10 years, said the report.
The second property acquisition is a distribution warehouse located near Glasgow in Scotland, leased to one of the largest parcel distribution companies in Europe, for an unexpired lease term of at least 11 years.
TFI and Investra have seeded the fund with £10 million ($15.2 million) capital from their respective balance sheets. The fund is targeting a net quarterly dividend of 7-9 per cent per annum and capital appreciation over three years, the report added.