Aareal Bank has financed the acquisition of four British logistics centres for one of the property funds managed by Kuwait Finance House, one of the largest Islamic banks. The overall volume
of the package is Ã¢âÂ¬ 51.5 million. In addition to a full range of banking services, Kuwait Finance House manages property funds that are compliant with Islamic Sharia law which, for example, prohibits payment of interest or investments in companies that do not observe the rules of the Koran.
Ã¢â¬ÅIslamic investors are turning increasingly to the European property market
as an interesting investment opportunity. At the same time we have become
aware of a growing number of Sharia-compliant investors.Ã¢â¬Â said Karl-Heinz
Glauner, Chairman of the Management Board of Aareal Bank. Ã¢â¬ÅWe reacted
to this trend at an early stage, developing Sharia-compliant structured
property financing arrangements.Ã¢â¬Â
The logistics centres that were acquired for the Ã¢â¬ÅAl Manar LimitedÃ¢â¬Â fund total
around 73,000 m2 of usable floor space and are located at prime logistics
bases throughout the UK. The buildings are fully let. Tenants include
BritainÃ¢â¬â¢s second-largest logistics service provider, and other well-known
logistics companies from the pharmaceutical, food and electronics sectors.
Aareal Bank provides a broad range of Property Finance services in 17
countries. Its teams of seasoned regional and industry specialists develop
structured property financing solutions that are specifically designed to meet
the requirements of the respective markets and jurisdictions.