The EIIB Pan-European Islamic Real Estate Fund ('the Fund') is structured as a tax-efficient Sharia'a compliant fund which will directly purchase commercial real estate assets in the office, retail and industrial sectors in and around major cities in the UK and Western, Central and Eastern Europe. EIIB has appointed Knight Frank Investment Management as the Property Fund Adviser who will source real estate deals and actively manage the properties thereafter.
The Fund takes the form of a closed-end fund with a fixed term of five years plus up to two years wind-down. With a target size of between €200 million to €500 million at launch, the Fund may consider a listing on a Stock Exchange after the initial capital is deployed.
The Fund's Investment Committee will be advised by EIIB's existing Sharia'a Supervisory Board, an independent body of recognised specialised scholars in Islamic commercial jurisprudence.
The Fund's target return is>11% IRR per annum net of fees and expenses, and will be targeting income of>7% per annum net of fees and expenses. The Fund plans to invest around 25% in the UK, representing high quality 'core' properties yielding 5-8% IRR per annum, with around 75% invested in Continental European 'value-added' properties yielding 12-15% IRR per annum.
EIIB will be a co-investor in the Fund.
Jeremy Beswick, Head of Asset Management, EIIB, said: 'The launch of this fund is a significant milestone in the development of EIIB, representing an example of EIIB's intention to offer sophisticated and differentiated products to the Islamic investments marketplace. We believe there will be significant investor interest in this fund, which will deliver to investors a diversifed commercial property portfolio including exposure to the rapidly-developing markets in Central and Eastern Europe.'
The launch is part of the roll-out of EIIB's own Sharia'a compliant investment fund range, covering the real estate, hedge fund and private equity asset classes, and including capital-protected structured products.
EIIB is also developing a number of derivative and asset securitisation products and expects further new issue mandates in the coming months. EIIB will also partner with other financial institutions, both Islamic and conventional, to create bespoke Sharia'a compliant investment products according to demand.
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Browse related articlesEuropean Islamic Investment Bank Plc launches €250 million Sharia'a compliant real estate fund
European Islamic Investment Bank Plc ('EIIB'), the first independent, Sharia'a compliant Islamic investment bank to be authorised and regulated by the UK Financial Services Authority, announced the launch of a Sharia'a compliant real estate fund.
- Bahrain: Sunday, December 10 - 2006 at 15:16
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EIIB Pan-European Islamic Real Estate Fund - Other Facts:Fund Structure: The Fund takes the form of a Cayman Islands-registered fund company, owning 100% of a Luxembourg-domiciled holding company, with subsidiary Single Purpose Vehicles holding the real estate assets in each target country.
Leverage Policy: Sharia'a compliant financing will be deployed at appropriate levels throughout the life of the Fund, with a potential maximum leverage of 75% anticipated at the Fund's launch.
Minimum Investment: The minimum investment is €250,000. The Fund will be valued and priced in euros.
Dividend Policy: The Fund intends to pay all net dividend income received to shareholders each quarter.
About EIIB:
EIIB was incorporated in January 2005 and received its authorisation by the FSA on 9 March 2006. On 3 April, it opened for business, and on 17 May completed its IPO and was admitted to London's AIM market.
Headquartered in London, EIIB's range of products and services will include the following Sharia'a compliant investment banking activities:
- Islamic Treasury and Capital Markets
- Asset Management, including Private Banking
- Structured Trade Finance
- Corporate Finance and Advisory.
EIIB aims to deliver a full choice of alternative investment opportunities, enabling Islamic investors to construct balanced and sophisticated portfolios which can access a full range of asset classes internationally.
EIIB will seek to service a market for Sharia'a compliant investment banking services in Europe, the Middle East and Asia that it believes has been under-exploited by conventional and Islamic banks, and by non-banking institutions. EIIB intends to become a major participant in the market for Islamic securities, treasury and investment products, which is currently experiencing rapid growth.
The founding shareholders of EIIB include Gulf based individuals and institutions, including a number of Islamic banks, as well as individuals and companies based in Europe.
This News Release is not an offer of units in the Fund nor is it to be interpreted as being such an offer. Units in the Fund will be offered only on the terms and conditions set out in the offering memorandum for the Fund. The offering memorandum will be released on a private basis to selected parties only.
Further information:
Issued on behalf of European Islamic Investment Bank by Hill & Knowlton. For more information contact Sami Amin on
Tel: +973 17 533532,
Fax: +973 17 533370
EIIB plc
Jeremy Beswick
Tel: 020 7847 9970
Fishburn Hedges
Mark Tierney/Michelle James
Tel: 020 7839 4321
Posted by Lara Lynn Golden, News EditorSunday, December 10 - 2006 at 15:16 UAE local time (GMT+4)
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