London-based Integrated Property Investments (IPIL) and Fyshe Crestar, the UK's only Shari'ah complaint stockbroker, have announced that investors now access to the country's first property investment product structured to adhere to Islamic law.
The Beacon 1 Limited Partnership Fund will invest in commercial property across the UK, with the aim of delivering an annual distribution of 7.5 percent throughout its seven-year life.
The fund, which is an unregulated collective investment scheme, will be managed by IPIL. The minimum investment in the fund will be 10,000 British pounds ($18,610), with a total of at least three million pounds needed to progress. Subscriptions will close by March 31st 2004.
“With around two million Muslims currently living in the UK, the range of investment opportunities open to them that comply with their religious beliefs has historically been quite limited,” said Chief Executive of Fyshe Crestar, Hardeep Tamana. “The Beacon 1 Limited Partnership Fund gives the community the opportunity to invest for the longer term in the asset class of Commercial Property. We are anticipating that this will be of great use for those investors looking to develop a SIPP or SSAS.”
Commercial property is seen by many as being a greatly under-used sector for private investment, offering good yields. Because of this, it is hoped that the fund will appeal to a wider audience beyond the Islamic community.
“The fund will be managed in compliance with Islamic law – for example we will not rent properties to organizations involved in trades such as alcohol, tobacco or the preparation of pork products,” said Integrated Property Investments Limited’s Suleiman Dualeh. “However, this in no way means that only the Muslim community can invest with us – we believe the fund presents a highly viable proposition for investors regardless of their religion.”
Fyshe Crestar is an asset manager based in London, which offers a bespoke investment service to both private clients and institutions. The company was established to provide a service to those investors looking for access to Shari’ah Compliant investments. It specializes in creating investment portfolios, and where appropriate, allowing them to be held in tax efficient forms such as SIPP’s, PEP’s or ISA’s. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
