First Islamic concludes first European real estate transaction

The joint venture vehicle, Crescent Euro Industrial I, will acquire usufruct lease interests in a Portfolio of industrial distribution facilities in Germany.

The Portfolio is expected to consist of 5 to 8 stabilized industrial distribution facilities with a total value of between €150 and €200 million. The properties will be spread across markets of strategic importance to German distribution, logistics, and industrial sectors, such as Hamburg, Dusseldorf, Cologne, Frankfurt and Berlin

First Islamic's joint venture partner, Lend Lease REI, is a subsidiary of Lend Lease Corporation Limited ("Lend Lease"), one of the world's leading real estate companies with $49.1 billion of assets under management. Listed on the Australian Stock Exchange, Lend Lease provides a full spectrum of real estate-related services and operates in 43 countries on six continents

Aareal Bank, one of the largest property financiers in Germany, has provided a 6-year senior financing facility, with two 1-year extension options, for 75-78% of the purchase price of each property in the Portfolio.

First Islamic projects that the investment will generate an attractive blended Internal Rate of Return over the seven-year investment horizon, inclusive of an annual cash yield that will be distributed on a monthly basis,.

Atif A. Abdulmalik, First Islamic's Chief Executive Officer, said "We selected Germany for our first industrial real estate venture in Europe because it is the largest European economy and has a geo-strategic location at the center of Europe. Germany is also the second largest exporting nation in the world, and the Portfolio properties are located along the major trans-European transportation routes."

Mohamed Nooruddin, Executive Director, Investment Placement, said "We are delighted to be able to offer our investors an opportunity to diversity their investments into the European market. The industrial distribution facilities in the Portfolio are leased to large and creditworthy tenants with long term leases, thus ensuring a steady and secure income stream to our investors. We anticipate offering additional European real estate investment products in the future."