Islamic bank invests into Scottish student residential property

Monday, 11th May 2015

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Islamic bank invests into Scottish student residential property Daily Cover UK: Gatehouse Bank has acquired a student accommodation property (Fountainbridge) in the capital of Scotland for GBP20 million (US$30.42 million) from Rockspring Property Investment Management. Located centrally to the University of Edinburgh, Herriot-Watt, Napier and Queen Margaret universities, the London-based Islamic bank’s latest investment marks its shift into the direct-let assets sector as the Fountainbridge acquisition includes a subset of direct-let rooms. “Student accommodation is a sector which is well understood and in high demand among our investor-base. Today our clients are looking for stable, yielding assets, and Fountainbridge is the first of several income-generating investments which we plan to introduce throughout the remainder of the year,” shared Henry Thompson, CEO of Gatehouse, in a statement to IFN. David Swan, the head of real estate investment at the bank, confirmed that Gatehouse intends to expand its portfolio within the lucrative student accommodation space, with several other investments being weighed at the moment. In 2014, the bank generated a combined value of over GBP100 million (US$152.12 million) from its four investments, consisting of over 1,600 beds, in the segment. “Having successfully invested in this sector previously, Gatehouse has a wealth of experience, which provides us with the ability to transact with sellers in a timely and efficient manner,” said Swan. The shortage of residential supply for students in the UK has made student accommodation a strong asset class for investors, and Shariah-conscious investors are also moving in to cash gains. Last month, another Islamic finance player, Tadhamon Capital from Bahrain, revealed that it is making UK student accommodation a key focus in its investment strategy following the sale of its maiden Central London student property investment which realized over 70% in return to investors over a period of less than three years. Marle Place Property acted on behalf of Gatehouse, and Knight Frank on behalf of Rockspring. IFN Weekly Poll Should Islamic finance be recognized as just another asset class in the greater banking industry, or as an entirely separate system? As our niche industry grows from strength to strength every year, one cannot help but ask how financial markets see Islamic finance. This week IFN asks the tough question – if it should be regarded as an asset class or a separate system altogether. NABILAH ANNUAR gauges market perceptions. This week's poll question: What is the preferred Sukuk listing center? Today's IFN Alerts OMAN: Omani government confirms OMR200 million (US$519.48 million) private placement Sukuk; issue to open for subscription soon MALAYSIA: RHB Islamic announces profit payment for RM1 billion (US$278.57 million) Sukuk Murabahah SAUDI ARABIA: MSCI to launch MSCI Saudi Arabia Indexes next month; announcing pro forma constituents and weights tomorrow PAKISTAN: BankIslami Pakistan completes merger with KASB Bank OMAN: Al Yusr Islamic Banking expands network with new branch in Nizwa MALAYSIA: AmIslamic supports IFN Asia Forum 2015; takes on lead partner role and luncheon sponsor PHILIPPINES: Al Amanah Investment Bank shows marked improvements in financial performance for the 2014 financial year EGYPT: Faisal Islamic Bank sees total volume of business grow by 9.9% in the first three months of 2015 BAHRAIN: Al Baraka Banking Group records 3% growth in first quarter profit; plans further expansion BAHRAIN: Ithmaar Bank drives net profit up 261% in the first quarter OMAN: Al Hilal MENA Fund posts 12% year-to-date returns INDONESIA: Fitch downgrades Bank Muamalat Indonesia; assigns negative outlook SAUDI ARABIA: Standard Chartered’s Steve Bertamini joins Al Rajhi Bank as CEO SAUDI ARABIA: Saudi British Bank supports IFN Saudi Forum 2015 as lead partner MALAYSIA: Labuan IBFC to host a breakout session on its international Waqf foundation at the IFN Asia Forum 2015

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