Sidra Capital, Gateway Bank expand real estate portfolio

Sidra Capital (Sidra), a Shariah-compliant financial services company based in the Kingdom, and Gatehouse Bank, a UK-based Shariah compliant bank specializing in UK real estate, have announced the completion of their second real estate acquisition in the United Kingdom Real Estate Fund (SURF) for 22.4 million pounds.
Drawing on the key strengths of the two partners — Gatehouse’s Real Estate and Shariah expertise in the UK’s market sector and Sidra’s comprehensive knowledge of alternative investment fund activities in the Middle East — the fund will acquire a diverse real estate portfolio in the UK, offering Saudi Arabian investors access to one of the world’s most transparent and well-regulated markets.
Hani Othman Baothman, managing director and CEO, Sidra, said: “Sidra Capital and Gatehouse Bank are successfully working together toward a shared investment objective with SURF, identifying and securing high quality Shariah-compliant assets with driven rental and capital value growth.
With the fund’s second acquisition in TDG UK, a major European logistics warehouse distribution center, we continue to harness investments that meet our asset criteria for tenant profile and strength. Given a promising pipeline of potential acquisitions, SURF’s capital has been invested promptly and effectively by the team. ”
Adam Cavanagh, head of real estate, Gatehouse Bank said: “SURF identifies a requirement from international investors to provide secure, income producing, low risk investment opportunities in the relative safe haven of the UK market.
SURF has been created specifically for those investors looking for exposure to the UK real estate market. Following the second acquisition, SURF is already yielding a return of 7.00 percent to investors. These returns are secured against high quality properties let to financially strong tenants on long lease terms providing security of income over the projected five-year life of the fund and beyond.
Notably, having traditionally focused on Central London offices, overseas buyers from Asia and the Middle East are starting to become more active, identifying opportunities in UK for covenant quality and lease length.”