Tadhamon Capital and Apache Capital completes the acquisition of Paris Gardens in Central London

The development, known as Paris Gardens, is due for completion in September 2013. The transaction is valued at GBP 45mn and forms part of the Tadhamon Capital & Apache Capital Partners' (TC-AC) managed Social Infrastructure investment platform with current gross AUM of $140m. It was concluded at a net initial yield (NIY) of 6.4% and will distribute an average quarterly net cash yield of 7.3% p.a. to investors (6% p.a. during the first year of construction and 8% p.a. thereafter) with the income being guaranteed by the developers, McLaren Property.

Paris Gardens lies within the London Borough of Southwark, on the south bank of the River Thames and is within minutes of walking distance from some of London's major universities including King's College London, London South Bank University, City University, University of Westminster and London Business School. The property will consist of a 9-storey and 13-story development to provide student accommodation of 253 beds, a common room and communal courtyard, and an art school of 33,230 sq ft across 3 floors. It will be managed by Victoria Hall, a specialist student accommodation company with a presence in 14 major cities in the UK and Europe.

Mr. Waleed Abdulla Rashdan, Chief Executive Officer of Tadhamon Capital stated: "Paris Gardens represents our third transaction into the UK under our Social Infrastructure platform which was initiated with our first acquisition in Q4 of 2010 of a special needs school, and subsequently our acquisition of a student development property in 2011. The strong performance of these acquired assets has reinforced our belief in the sector and its resilience in the face of economic turmoil. Through our presence and transactions in the UK market we have sought to developing on-going close relationships with some of the industry's most established names to continue fulfilling our investors' interest in this sector. Over the coming 12 months, we are committed to complete a number of relatively advanced transactions in our pipeline that will target to deliver secured distributions of 6% to 8% p.a. to our investors. These include a joint venture providing social housing within some major UK cities and additional student accommodation properties in top-rated university cities."

Social Infrastructure as defined by Tadhamon Capital and Apache Capital Partners includes the sectors of Student Housing, Healthcare, Education and Social Housing within the United Kingdom. Each of these sectors benefits from strong macroeconomic drivers which support the underlying property values and through asset management initiatives, offer scope for further value enhancement. These sectors provide investors with the opportunity to invest in assets which are typically supported by strong covenants and benefit from long term income streams, with fixed rental uplifts.

Tadhamon Capital B.S.C. (c) is a Sharia'a compliant investment company licensed by the Central Bank of Bahrain. Tadhamon Capital specializes in structuring and managing new investments and products across its business lines, consisting of Real Estate, Private Equity, and Treasury & Capital Markets.

Apache Capital Partners LLP, headquartered in London and with an office in Bahrain, is a niche real estate investment management firm. Apache Capital was established in 2008 to take advantage of a steep correction in the value of UK real estate and the partners are seasoned property investment professionals and have completed over £10bn of property transactions.

McLaren Property is the real estate development and investment division of the McLaren group of companies. The company currently manages over 2,000 student beds and has a pipeline of development assets in excess of £500m within target locations in prime Central London and around the UK working both independently and in joint venture partnerships.