Bahrain firm acquires prime UK property

Tadhamon Capital and Apache Capital Partners, the Bahrain- and London-based Islamic real estate investment companies, have completed the acquisition of a prime central London student accommodation development.

The acquisition is a joint venture with McLaren Property.

The development, known as Paris Gardens, is due for completion in September 2013.

The transaction is valued at GBP45 million ($71 million) and forms part of the Tadhamon Capital and Apache Capital Partners-managed social infrastructure investment platform with current gross assets of $140m under management.

It was concluded at a net initial yield of 6.4 per cent and will distribute an average quarterly net cash yield of 7.3 per cent a year with the income being guaranteed by the developers McLaren Property.

Paris Gardens lies within the London Borough of Southwark, on the south bank of the River Thames and is within walking distance from some of London's major universities, including King's College London and City University.

The property will consist of a nine-storey and 13-storey development to provide student accommodation of 253 beds.

It will be managed by Victoria Hall, a specialist student accommodation company with a presence in 14 major cities in the UK and Europe.

'Paris Gardens represents our third transaction into the UK under our social infrastructure platform which was initiated with our first acquisition in the fourth quarter of 2010 of a special needs school, and subsequently our acquisition of a student development property in 2011,' said Tadhamon chief executive Waleed Abdulla Rashdan.

'The strong performance of these acquired assets has reinforced our belief in the sector and its resilience in the face of economic turmoil. Through our presence and transactions in the UK market we have sought to develop ongoing close relationships with some of the industry's most established names to continue fulfilling our investors' interest in this sector.

'Over the coming 12 months, we are committed to completing a number of relatively advanced transactions in our pipeline that will target to deliver secured distribution of 6 per cent to 8 per cent a year,' he added.

'These include a joint venture providing social housing within some major UK cities and additional student accommodation properties in top-rated university cities.' – TradeArabia News Service

Source: http://www.tradearabia.com/news/REAL_221150.html