UK: Following the
success of its first Islamic residential fund, UK-based London Central
Portfolio (LCP) has introduced a second instalment known as London
Central Apartments II (LCA II). The Shariah compliant five-year fund
invests in areas such as Mayfair, Kensington and Chelsea and is
projecting a 12% yearly internal rate of return, with shares to be listed
on the Channel Islands Securities Exchange Authority.
“Muslims make up 25% of the world population and with 3.3 million British
Muslims alone, corporates should definitely be looking at Islamic
investment solutions. This is particularly true in the real estate
sector, which is popular among Muslims who look for investments that are
asset-backed or asset-based,” explained Naomi Heaton, CEO of LCP. “The
sovereign Sukuk invest in commercial property and we are delighted the
government is so solidly behind us in opening up the real estate sector
to Muslim investors through our new Shariah residential funds.”
The UK is not unfamiliar with Shariah wealth making to its shore in the
form of infrastructure investment. The Shard, Olympic Village and
Battersea Power Station are examples of such investments, a testament to
the growing influence of Shariah-seeking investors from the Middle East
and Malaysia in the development of UK’s landscape. The highly successful
UK debut sovereign Islamic debt, which saw 37% of its subscriptions
coming from the Middle East and a third from domestic Islamic banks, also
builds the case for UK’s real estate sector as a lucrative asset class
for both Islamic investors and conventional investors, and this lends
strength to Shariah compliant residential funds. In fact, 75% of
subscriptions to LCP’s first Shariah residential fund were taken up by
non-Muslims.
Open to both institutional sector and individuals worldwide, the LCA II
has thus far been successful in raising funds to meet its GBP100 million
(US$160.57 million) target and is calling for final subscriptions by the
30th November. The fund is expected to diversify the
relatively limited range of investment options available for Islamic
investors.
“LCP is providing access to a unique and attractive asset class whilst
ensuring the fund remains within the bounds of Shariah statute. As a
bricks and mortar product, often preferred by Muslim investors, the LCA
fund is a perfect recipe for us,” commented Faizal Karbani, CEO of
financial advisory firm Simply Sharia. “The projected returns are
excellent and LCP provide a strong track record. As such, many of our
clients are investing in this proposition.”
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