Best Islamic real estate deal:
Park Cresent West
Lead managers: Amiri Capital, Norton Rose, King & Spalding
It was not a vintage year for Islamic real estate transactions, but this one in London was a good example of the way Islamic finance is becoming increasingly active in high-end UK property as Gulf institutions invest more and more in this market.
The transaction involved PCW Property, a private company created by alternative asset manager Amiri Capital, buying the Park Crescent West building in Regents Park from Great Capital Partnership. This is a high-prestige location: a grand crescent comprising commercial, court and residential property with a tenant list including the Royal Institute of British Architects and the Secretary of State for the Environment.
Part of the £105 million ($172.6 million) cost was funded through a Shariah-compliant financing from ABC International Bank, part of the Bahrain-based banking group. They will now redevelop their purchase into 170,000 square feet of floor space, including 80 luxury flats selling at £4 million to £5 million apiece.
Gulf money finding its way into London luxury residential redevelopment is nothing new, but it is interesting to find Islamic financings becoming routine for these ventures.