UK - Gatehouse acquires Rolls-Royce real estate for $87.9 million

Gatehouse Bank (Gatehouse) has completed the £52.7 million ($87.9 million) acquisition of the Rolls-Royce core manufacturing and logistics facility in Scotland


Delivering an annual cash yield of eight per cent, or £4.8 million ($8 million) over three years, the lease benefits from fixed rental uplifts of 1.5 per cent per annum with a 17 years' of certain term income.


Fahed Boodai, Chairman of the Board of Directors at Gatehouse Bank commented, “I am pleased to announce the completion of this high profile acquisition on behalf of our clients. The core manufacturing and logistics facility purpose built for and let to Rolls-Royce plc offers a one- of-a-kind opportunity that delivers maximum benefits to our clients.


“The superior financial covenant of a Grade A-rated blue chip company is undisputed and combined with the certainty and length of income provided by this transaction, these factors strengthen the return on investments for our investors. Ultimately, we are proud to deliver a gold-standard investment opportunity that is a rare and extremely valuable asset to have in the market.” (full story)



Boodai added, “I express my thanks to the Gatehouse team, who continue to make further inroads in the delivery of world-class commercial real estate activity to the GCC market. Gatehouse's success is marked by an incredible milestone achievement, in a real estate portfolio that has reached in excess of £200 million ($333.5 million) in 18 months.

“These impressive figures are a result of investor participation from a wide and diverse investor base with up to 50 per cent client repeat activity in transactions, as solid returns on their investments continue to be proven. To address investor appetite we are continuing to address and create an optimal transaction pipeline with more high yielding and long-income type transactions in the office and the student accommodation sector.”

Gatehouse Bank strategy to grow and nurture its investor base is based on its ability to respond to market needs and bring transactions to the market quickly. The performance of the Real Estate business line continues to generate productive gains, both reflected in existing and new investor uptake in transactions by GCC high-net worth and institutional investors.

Boodai also emphasises, “Timing is everything for our investors. We understand a new surge of interest in 'safe haven' opportunities, has certainly led to greater level of inquiry about secure, quality investments offshore. And with a strong understanding of UK market fundamentals and our ability to source and secure high yielding and sustainable returns in London and UK-based activity, we have accomplished our objective to deliver rewarding, unique opportunities that have led to our credible position as a leading provider of Shari’ah- compliant real estate in the UK.”

Philip Churchill, Head of Real Estate at Gatehouse Bank, said, “Glasgow is a major business location and the largest industrial centre in Scotland. The fact that the local industrial market has shown great resilience in 2010, makes this a solid investment opportunity with significant growth potential and good returns.”

He added, “We have been seeing a considerable demand for properties let to strong tenants on leases of 10 years or more. We believe this demand is set to continue resulting in increases in capital values over the projected hold period to generate strong returns for our investors.”

Source : http://www.cpifinancial.net/v2/News.aspx?v=1&aid=7841&sec=Islamic%20Finance - May 2, 2011