First Islamic Investment Bank has formed a joint venture with Sunrise Senior Living to acquire indirect interests in a portfolio of three properties, comprising 256 residential units, in the assisted living sector in the United Kingdom for a total transaction value of £64.6 million ($105 million).
The properties are situated around the M25 motorway of London. First Islamic and its co-investors indirectly have an 80 percent interest in the joint venture, with Sunrise holding the remaining 20 percent. The Bank of Scotland has provided a senior financing facility of approximately £40.6 million to finance the acquisition of the properties.
With an equity market capitalization of $575 million at March 31, 2003 and total assets of $1.1 billion, Sunrise owns and operates more than 350 communities throughout the United States, Canada and the United Kingdom.
Assisted living facilities are for people needing assistance with “activities of daily living” but wishing to live as independently as possible for as long as possible. Assisted living facilities offer help with activities such as eating, bathing, dressing, laundry, housekeeping, and assistance with medications.
First Islamic projects that the investment will generate an attractive blended Internal Rate of Return over the five to seven year investment horizon, inclusive of an annual cash yield that will be distributed on a monthly basis.
“We believe that the demographic trends in the United Kingdom are more favorable than the United States as a higher percentage of the population is projected to require Sunrise type services in the future than that in the United States,” said Chief Executive Officer of First Islamic, Atif A Abdulmalik.
Bahrain-based First Islamic Investment Bank was established in 1997. Today, with a paid-in share capital of $112.5 million, and over 100 shareholders, First Islamic’s mission is to provide innovative, Shari’ah compliant investment banking products to institutional and individual investors internationally. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
