The Islamic bank Venture Capital Bank of Bahrain has acquired a freehold residential development in Central London, its first investment outside of the Middle East and North Africa. apartments for sale
The residential construction is near Berkeley Square and Grosvenor Square in the Mayfair Conservation Area. The bank said in a statement that Mayfair Chambers includes a building under construction for six luxury residences, with a delivery date of April 2014.
Home prices in central London have soared in recent years, owing in part to Middle Eastern interest, but there have been signs of a slowdown recently.
"The development is underpinned by its prime position [in] Mayfair, which is considered to be one of the most prominent areas in London," VC Bank CEO Abdullatif Mohamed Janahi said in a statement. "Next to Oxford Street and one of the finest shopping streets in London; Bond Street, the development is underpinned by its prime location [in] Mayfair, which is considered to be one of the most prominent areas in London," VC Bank CEO Abdullatif Mohamed Janahi said in a statement.
"This acquisition is consistent with VC Bank's investment strategy, which is to diversify the investment portfolio geographically and across industries while focusing on high-quality, stable assets with attractive valuations."
According to the bank's website, VC Bank is the first Islamic venture capital bank in the GCC and MENA region. For the 15 months ended March 31, the bank posted total revenue of $39.6 million and a net profit of $20.2 million. In comparison, the company lost $58.7 million in the calendar year 2011.
The Asian Islamic REIT has been launched by Bahrain Bank.
Bahrain's Al Salam Bank has announced the launch of a Sharia-compliant real estate investment trust that will invest in Asian properties.
ASBB will be the initial investor in the new fund, which will be run by B&I Capital AG in Switzerland. According to the announcement, the new REIT will invest in 15 to 35 assets with a focus on providing investors with a long-term, superior risk-adjusted total return. The size of the fund was not disclosed by the Islamic lender.
In a statement, Dr. Anwar Khalifa Al Sada, deputy CEO of ASBB, said, "The fund seeks to offer the advantages of diversified real estate ownership in Asia while avoiding many of the pitfalls of owning physical property and real estate developer equities."
The REIT would allow investors to invest in real estate, which is a common asset in Islamic finance, which adheres to strict rules that prohibit gambling, tobacco, and alcohol.
According to ASBB, it was an anchor investor in Sabana Industrial REIT, which was the world's first REIT to follow Islamic values and was listed on the Singapore stock exchange in 2010.