The First Investor (TFI), the investment banking division of Barwa Bank Group (BBG), is pleased to announce the signing of a memorandum of understanding with Investra Investments LLC (Investra), announcing the first major fund in the region that would invest in income-generating property in the distribution and logistics sector of the United Kingdom.
David J. Clarke, CEO of TFI commented on the venture, “TFI is proud to partner with Investra for what will be TFI and Barwa Bank Group’s first fund in the UK. We expect to launch the fund in January 2013, and are happy to give investors the opportunity to invest in a Shari’ah compliant manner in the UK real estate sector. I am confident that with TFI’s investment expertise and Investra’s specialised knowledge of the UK real estate market, investors will be very satisfied with the expected results.”
The fund has been structured to cater for the income-generating needs of investors in the region. Combining TFI and Investra’s resources and expertise, the Fund will focus on distribution and logistics property with strong tenants and long lease agreements. With attractive risk-adjusted target yields, the fund offers investors the opportunity to access a specialist asset class in the United Kingdom. As sponsors, TFI and Investra, have seeded GBP 5 million each into the proposition.
Zaid Randeree, Managing Director of Investra, said, “TFI is a professional and experienced investment manager and we are extremely pleased to work with them and offer our know-how of the UK real estate market to provide an extremely attractive fund.”
The fund will offer attractive target net yields of 7-9% per annum, exposure to a specialist asset class allowing for diversification and subscription with investment as low as £250,000.
Against the backdrop of an economic slowdown in neighbouring Europe, the UK distribution and logistics market is yielding attractive opportunities for investment. The sponsors aim to put together a portfolio of assets that will yield attractive levels of rental income at low acquisition prices. . Investra and its affiliate Pelham have considerable expertise as principal investors and property managers in the UK market with circa GBP 1 billion of investment in UK real estate. Investra has therefore built a strong track-record primarily in the UK working closely with select on ground service providers.
Mohamed Al Hasan, Head of Real Estate Investments, TFI concluded, “With major institutional investors now focusing on the UK, it is becoming an increasingly attractive sector. The fund offers unique opportunities to benefit from this lucrative investment opportunity. Distribution, warehousing and logistical assets in the UK are generating particularly strong returns, so the timing of this partnership could not be more compelling.”
ABOUT THE FIRST INVESTOR (TFI)
TFI is a leading Shari’ah investment company in Qatar owned by Barwa Bank and regulated by the Qatar Central Bank. It is emerging as one of the most respected investment banking firms within the region, combining Qatari leadership with both international and local expertise to provide dedicated services in Investment Banking, Asset Management and Real Estate Investment. Through its strong international network of relationships and deep technical expertise, TFI provides a global approach in helping clients formulate, deliver and manage effective corporate strategies. Visit http://www.tfi.com.qa for more information
ABOUT INVESTRA INVESTMENTS LLC
Investra Investment LLC (‘Investra’) acts as principal, advisor and arranger of real estate investments in the UK. Investra is registered as a commercial investment company in Dubai and works with a team in London to professionally bring forward transactions, equity and execution skills to high net worth families, institutions and sovereign wealth joint venture companies looking to participate in strategic investment opportunities in select markets. Investra has operated in various asset classes in the UK in a select manner targeting institutional grade investments that qualify for its own equity as well as co-investors. Through the principal’s experience to deal with transactions in the Central London Office, High Street Retail, Regional Offices and Distribution sectors. The principals have collectively invested and advised on transactions over £1bn.
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