First Islamic concludes first European real estate transaction
The First Islamic Investment Bank has formed a joint venture with Lend Lease Real Estate Investments.The joint venture vehicle, Crescent Euro Industrial I, will acquire usufruct lease interests in a portfolio of industrial distribution facilities in Germany.
The portfolio is expected to consist of five to eight stabilized industrial distribution facilities with a total value of between €150 and €200 million ($200.5 million). The properties will be spread across markets of strategic importance to German distribution, logistics, and industrial sectors, such as Hamburg, Dusseldorf, Cologne, Frankfurt and Berlin
First Islamic's joint venture partner, Lend Lease REI, is a subsidiary of Lend Lease Corporation, with $49.1 billion of assets under management. Listed on the Australian Stock Exchange, Lend Lease provides real estate-related services and operates in 43 countries on six continents
Aareal Bank, one of the largest property financiers in Germany, has provided a six-year senior financing facility, with two one-year extension options, for 75-78 percent of the purchase price of each property in the Portfolio.
First Islamic projects that the investment will generate an attractive blended Internal Rate of Return over the seven-year investment horizon, inclusive of an annual cash yield that will be distributed on a monthly basis.
First Islamic Investment Bank, a Bahrain-based investment bank established in 1997, has a paid-in share capital of $112.5 million, and over 80 shareholders. — (menareport.com)
© 2002 Mena Report (www.menareport.com)