Tadhamon acquires $161m London project
Manama, November 26, 2013
Tadhamon Capital, a Bahrain-based Islamic investment company, has completed the acquisition of a mixed-use student development valued at more than £100 million ($161.9 million) in London.
The Paul Street development, its second prime Central London development to date, was concluded in joint venture with Apache Capital and McLaren Property, said a statement.
The development will comprise three blocks, two of which will contain 456 student accommodation units with a 1,550 sq ft ground floor retail space, with the third block consisting of a stand-alone office building.
Construction work is expected to commence in the first quarter of 2014 with completion targeted by the end of Q3 2015. The investment is expected to generate a minimum average annual net cash yield of 7.3 per cent and an internal rate of return of 17.5 per cent.
Waleed Abdulla Rashdan, chief executive officer, said: "Over the past four years, we have taken a strategic decision to expand our investments within the UK and have since focused on building our social infrastructure platform. To date, we have successfully closed 10 transactions at a total value of £240 million, and spanning the three diverse sectors of student accommodation, senior housing and care homes, and specialist education, within strategic locales around the UK.
“As part of our continued efforts to capitalize on the market and growth trends within the UK, we are currently exploring a number of prospects within the residential and office sectors as we believe these are currently recovering from the global economic downturn and would offer exceptional returns to our investors," he said.
"Over the past years we have established a solid real estate investment platform which will be used to replicate our success and experience within the UK to invest over the next 18 months in selected cities within the EU, US and Turkey. Our strategy has always focused on developing strategic partnerships within each market focusing on developing synergies to ensure the selection of high quality to our shareholders and investors," he added. - TradeArabia News Service