Successful closure of the $90m Shamil Bosphorus Modaraba

The Modaraba will invest in the lucrative Turkish real estate market. A 60% projected return on investment is expected over the three-year investment term of the Modaraba.

There was a strong interest in the Modaraba from regional institutional investors looking for access to this high growth sector in Turkey. The Modaraba's focus is on residential and mixed-use real estate developments in Istanbul, and secondary homes on the Turkish coast. These include residential projects in Istanbul, including luxury villas overlooking the Bosphorus, middle income apartments and holiday homes on the sea coast of Antalya, in southern Turkey. The total cost of the projects targeted is approximately $450m.

Shamil Bank subscribed to 10% of the $90m commitment as a vote of confidence in the Modaraba.

'The Turkish real estate market is very attractive, given the substantial economic growth that the country has experienced in recent years. This Modaraba was launched following a careful year-long study conducted by real estate specialists, law firms and tax consultants appointed by Shamil Bank to measure both the potential upsides and risks,' said Investment and Private Banking Head Mr. Abdul Hakim Al Mutawa.

'This Modaraba, which gives investors exposure to the burgeoning real estate market in Turkey, fits well into the portfolios of many of our clients, attracting stronger than expected interest from institutional investors from around the Gulf. Shamil Bank prides itself in being able to bring to the market innovative niche investment opportunities that are in line with the ethical principles derived from the Sharia'a. This Modaraba, benefits from both Shamil's considerable management expertise, as well as the local knowledge of our real estate partners in Turkey,' he added.