Tadhamon Capital, an Islamic investment company in Bahrain, announced the acquisition of a student accommodation block in the UK. The joint acquisition with Watkin Jones gives Tadhamon 50 percent ownership of the block.
The transaction totaled $41.3 million and included a net yield of 7.3pc. Tadhamon co-arranged the transaction with the real estate investment manager Apache Capital Partners.
The multi-story residential building, called Athena Hall, is situated approximately 113 km northeast of London in Ipswich. Developed by Watkin Jones, it is the only purpose-built student accommodation building on the campus of University Campus Suffolk. It contains 590 rooms, six retail units, and a parking lot.
"The whole team has worked very hard to conclude the transaction, especially in light of the current global financial crisis,” said Waleed Abdulla Rashdan, chief executive at Tadhamon Capital.
Tadhamon hopes to complete the acquisition of another ideal student accommodation property in a prime London real estate area by the end of the first quarter of this year. This property will have the capacity to house 250 students.
Tadhamon Capital is an investment firm and wholly-owned subsidiary of Tadhamon International Islamic Bank. It provides alternative investment methods and Sharia-compliant investment banking services for its clients. The company focuses on private equity, real estate, and treasury and capital markets.