European Islamic Investment Bank plc (EIIB-Rasmala), a London-listed asset management and financing group, has announced the expansion of its real estate business, which will focus on the origination, structuring and execution of real estate investment opportunities. The group also announced the acquisition of a commercial office building in the UK.

The real estate division will focus on identifying high quality, income generating opportunities in the UK, Europe and the United States.

The primary focus will be on the UK, with the strategy of targeting assets in London as well as secondary cities, where blue chip tenants occupy grade A buildings. The group expects to invest approximately $1.5 billion in a broad mix of real estate transactions over the next three years, with $750 million being allocated for investments in the UK. EIIB-Rasmala also announced the acquisition of a commercial office building in the UK for 11.8 million pounds ($17.9 million, AED65.9 million).

Located on the Doxford International Business Park, the office building covers a total area of 66,500 square feet (6,200 sqm). The property is occupied on a long-lease basis by the mobile telecommunications operator Everything Everywhere Ltd.

The expansion of the real estate business follows on from the launch of a series of new and innovative funds offerings during 2014, including the Rasmala Leasing Fund and Rasmala Trade Finance Fund.

Zak Hydari, group CEO of EIIB-Rasmala, said: “Real estate investments allow us to generate attractive returns for investors while further diversifying our product portfolio and offering greater choice to our clients.”

Naseer Aka, head of real estate of EIIB-Rasmala commented: “In order to meet the growing investor demand for secure long-term income, the real estate division will target high quality properties and leases with long-term tenor and excellent cash flow visibility, underpinned by reliable companies as our tenants.”