Sharia'a compliant real estate fund acquires Pound 58.8 million UK portfolio

Notes and media contacts

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, or e-mail: sami.amin@hillandknowlton.com

EIIB plc
Jeremy Beswick Tel: 020 7847 9970

Fishburn Hedges
Mark Tierney/Michelle James Tel: 020 7839 4321

Notes to editors

About the 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.

• The Fund has appointed Knight Frank Investment Management as the Real Estate 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 Adviser 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% Internal Rate of Return (IRR) per annum net of fees and expenses, and will be targeting income of >7% per annum net of fees and expenses over the life of the Fund. The Fund plans to invest up to 25% in the UK, representing high quality "core" properties yielding 5-8% IRR per annum, with the balance invested in Continental European "value-added" properties yielding 12-15% IRR per annum.

• The Fund takes the form of a Cayman Islands fund company, which will own 100% of a Luxembourg-domiciled holding company, and have subsidiary Single Purpose Vehicles holding the real estate assets in each target country.

• Sharia'a compliant funding 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.

• The minimum investment is €250,000. The Fund will be valued and priced in euros.

• The Fund intends to pay all net income received to shareholders each quarter.

About EIIB:
EIIB was incorporated in January 2005 and received its authorisation by the FSA on 8 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 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
- Sharia'a 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.