DOHA: The First Investor (TFI), the investment banking division of Barwa Bank Group (BBG) and Investra Investments LLC (Investra) yesterday announced the first two property acquisitions of the United Kingdom’s distribution, logistics and light-industrial income generating fund, which was launched in April 2013.
TFI has partnered with Investra for what is TFI and Barwa Bank Group’s first UK based investment initiative and the first major Shariah-compliant fund in the region of its kind that invests in income-generating property in the distribution, logistics and light-industrial sector of the UK targeting net quarterly dividends of 7-9 percent per annum and capital appreciation over three years. TFI and Investra have seeded the fund with £10m (approximately QR56m) capital from their respective balance sheets.
The fund’s first property acquisition is a manufacturing warehouse located in Bilston, Wolverhampton, leased to one of the largest manufacturers of highway and road railing and barriers, for an unexpired lease term of at least 10 years and a gross yield of 9.1 percent. The second property acquisition is a distribution warehouse located near Glasgow in Scotland, leased to one of the largest parcel distribution companies in Europe, for an unexpired lease term of at least 11 years and a gross yield of 9.9 percent.
Khalid Al Subeai, Director of the TFI Investra UK Property Income Fund and Chief Executive Officer of TFI said: “The UK distribution, logistics and light-industrial property sector has historically outperformed the office and retail sector in generating income yield over the past 30 years and we believe this is the right time to enter the market for three to five year investment horizon. I am confident that through TFI’s investment expertise and Investra’s specialised knowledge of the UK real estate market, we will be able to capitalise on this unique opportunity”.
TFI and Investra have put together an institutional grade investment programme in collaboration with Pelham Associates, a long standing property management firm based in the UK, and internationally renowned lawyers, tax advisors and administrators to deliver best in class governance, investment management and risk management. TFI and Investra will be continuing their investment program in the UK distribution, logistics and light-industrial sector until Q1 2014.
Zaid Randeree, Director of the TFI Investra UK Property Income Fund and Managing Director of Investra, said: “The strategy of the fund is to build a diversified portfolio of well located properties sized between £2 to £10m, with remaining lease terms of 8 years and yields of at least 8 percent, with single tenancies and tenants with strong covenants. We are pleased to have acquired the first two properties and are planning for two more acquisitions by August 2013.”
The Peninsula
