GLOBAL: The student
accommodation sector in the UK continues to gain traction as a preferred
asset class among Shariah investors as the segment continues to pose
attractive dividend yield levels and lucrative capital gains buoyed by an
undersupply of such properties in the market. One of these Islamic
investors is Bahrain’s Tadhamon Capital which has been investing in the UK
real estate market since 2009, but has made student accommodation a key
focus in its investment strategy. From the recent sale of its first Central
London student accommodation investment, the firm has managed to achieve
over 70% in return to investors over a period of less than three years;
following which it has committed itself to another UK student property
investment.
The Central London property – Paris Garden – was acquired by the firm as
part of the Tadhamon Capital & Apache Capital Partners’s managed Social
Infrastructure Investment Platform which currently boasts gross assets
under management (AUM) of over GBP350 million (US$520.7 million).
Generating a stable net 8% income for investors since 2013, the exit from
the project realized an internal rate of return (IRR) of over 25%,
exceeding initial expected return of 16.5% IRR.
While Central London remains an extremely attractive investment area,
investors are also looking to Greater London locations. Following the sale
of its Central London property, Tadhamon Capital is now keen to tap the
South London market and has entered a joint venture arrangement to develop
a new student accommodation at the center of Kingston-Upon-Thames. Valued
in excess of GBP45 million (US$66.95 million), the 210-studio room
development is expected to realize over 15% IRR over a five-year investment
period.
Hesham Al Gassab, the executive director of investment at the firm,
affirmed in a statement that student accommodation will be a core focus for
its Social Infrastructure Investment Platform whose AUM the firm plans to
grow to over GBP500 million (US$743.85 million) over the next year.
The UK aside, Tadhamon Capital also has its eyes set on other markets. “We
have a strong pipeline of transactions which we are evaluating and look to
build our current portfolio assets across the GCC, the UK and Turkey whilst
also looking to expand into the US market and potentially parts of MENA
region,” revealed CEO Ahmed Sultan.
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Brazil continues efforts to attract foreign investment
As mentioned in previous reports, the efforts being made by the federal
government to foster the Brazilian economic growth, to fight inflation and,
at the same time, to avoid recession, have been major and all these despite
some political difficulties that the federal government is currently facing
in implementing actions to cut expenses and, at the same time, to increase
its revenues.
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