(MENAFN Press) Al Salam Bank - Bahrain BSC (the Bank) has won the International Real Estate Financing Summit “ Middle East (IREF ME 2009) Award of Excellence for Outstanding Achievement in Islamic Real Estate Product Innovation. The prestigious award was received by EVP & Head of Europe, Mohammed Paracha, at a Gala Dinner held in London last night. The award recognises the innovative acquisition by the Bank of Milton Gate from a UBS vehicle earlier this year.
Located in the Square Mile, Milton Gate is an attractive seven-storey building offering more than 200,000 sq ft of Grade A office space in a prime Central London neighbourhood. The building is the head quarters of the law firm Addleshaw Goddard who took occupation under a long-term lease and spent a significant amount to tailor the interior of the property to their requirements. Other businesses in the immediate vicinity of the building include Slaughter and May, Linklaters, J P Morgan, Bloomberg and Macquarie Bank.
Mohammed Paracha said the Banks investment came through an innovative Sharia-compliant mezzanine structure, using the UKs recent laws that were brought in to support Islamic Finance transactions. It represents one of the most innovative structured financings in the sector for some time and the award recognises the Banks skills in being able to provide complex financial solutions and quality product to its investor base.
The investment has performed very well to date as commercial property yields have contracted as anticipated by us.
Our investors continue to enjoy a 10% p.a. yield on their investment.
The investment was largely viewed as a culmination of interest in the Londons prime commercial real estate market by Middle Eastern investors. The global liquidity crisis provided opportunities to relatively liquid Middle Eastern investors to take advantage of the historically low prices in this segment. Milton Gate, which was the Banks first transaction in Europe, is a continuation of the Banks global investment strategy and demonstrates the Banks strengths in origination and execution of quality transactions outside of its native Middle East market.
Al Salam Bank “ Bahrain was advised by Jones Lang LaSalle, Herbert Smith and Ogier.