www.property-magazine.eu - La Française AM has created the first Sharia compliant OPCI (collective real estate vehicle with simplified investment rules with leverage) dedicated to institutional investors, including one of the largest and leading Islamic corporate and investment banks in the world, based in Kuwait.
The Kuwaiti bank prefers not to disclose its name as most of its global investment activities are done in low profile.
The newly introduced Sharia compliant structured OPCI vehicle, considered the first of its kind in France, is the chosen vehicle to lodge the office building located 91, boulevard Saint Michel, Paris 5e. The building was purchased jointly with the Kuwaiti bank. The office building is leased to France Telecom, a leading telecommunications operator, within a 10-year lease contract. The building was sold by Foncière des Régions for roughly €46 Million. The acquisition was partially leveraged by way of a Murabaha loan (a Sharia compliant loan facility structure that is primarily comprised of principal plus a fixed profit margin) with non-interest bearing outlay. (source)
Since 2010, La Française AM and the said Islamic investment bank have been linked by a Joint-Venture partnership for the sourcing and asset management of Sharia-compliant core real estate projects in France. The Islamic bank considers the French market as key to its global investment allocation. As such, it decided to team up with a local, high caliber and experienced French partner, La Française AM, to implement its proficient investment strategy.
The International Real Estate Department Manager of the Islamic bank said “We are delighted to carry out our first partnership with a well-known local player, La Française AM. This investment represents the cornerstone for our future investments in French real estate. Our choice naturally settled on La Française AM given their extensive and successful track record, as well as, the financial solidity of their group.”
Source:http://www.property-magazine.eu/la-fran-aise-am-launches-the-first-opci-sharia-compliant-in-france-20807.html - May 3, 2012
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