Gatehouse Bank and Sidra Capital complete latest 32 million acquisition for UK Real Estate Fund
Gatehouse Bank plc (Gatehouse), a Shariah compliant wholesale investment bank based in the City of London and regulated by the FSA, together with Sidra Capital (Sidra), a CMA regulated Shariah compliant financial services company based in Saudi Arabia, have completed the £32 million acquisition of the newly constructed Market House, in Maidenhead. The 74,146 sq ft property is let to Adobe Systems Europe Ltd as its EMEA headquarters, with a weighted unexpired lease term of 10.5 years.
The acquisition was made via Gatehouse Bank and Sidra Capital’s £100 million Sterling UK Real Estate Fund (“SURF”), and will significantly contribute towards the Funds’ targeted return of 7%.
SURF is open to both UK and international investors and draws on the key strengths of the two partners – Gatehouse’s Shariah compliant expertise in the UK’s real estate sector and Sidra’s comprehensive knowledge of alternative investment fund activities in the Middle East. It aims to acquire a diverse real estate portfolio in the UK, offering investors access to one of the world’s most transparent and well-regulated markets.
The property in Maidenhead is split over ground and three upper floors and offers Grade A office space in a prominent and centrally located position. Maidenhead is one of the most high profile office markets in the Thames Valley, with a high concentration of HQ firms from a variety of sectors attracted by its transport links and proximity to central London.
Adam Cavanagh, Head of Real Estate at Gatehouse Bank, commented: “The M25 office market remains an extremely resilient sector, with more than 200,000 sq ft of space taken last year. This was the largest figure in over a decade and, with vacancy rates continuing to fall, the potential for headline rents to exceed £35 per sq ft over the next five years offers a major attraction for investors.”
Adam added: “Demand from international investors is focused on large, £20 million plus lot sizes, where active asset management offers significant scope to enhance returns. Middle Eastern investors in particular favour 10 year income assets, and sourcing income-producing real estate investment opportunities with sustainable returns is a key element of our acquisition strategy.”
The developer and vendor was Shepherd Building Group.
As Mark Perkins, Chief Executive of Shepherd Group Built Environment, said: “The sale of Market House reflects our reputation as a leading solutions provider to users, occupiers and the wider business community. Despite a slow market and continuing global economic uncertainty, the Shepherd portfolio of developed projects continues to attract investors, an appetite which we satisfy through strategic development projects, assets which can be built through our Shepherd Aligned offering and those which play to our strong in-house design capability.”
With a global real estate portfolio in excess of £575 million, Gatehouse Bank specialises in originating, structuring and funding investments in a Shariah compliant manner. To meet continuing investor demand for high quality property investments, Gatehouse provides leading advice and opportunities to investors across a diverse range of properties ranging from office, student and logistics sectors.
Gatehouse Bank has been named Best Investment Bank 2018 at the Global Islamic Finance Awards, in recognition of its successful Real Estate Investment Advisory and Build-to-Rent capabilities.
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