Flip through the latest issue of Gulf Weekly.
Gatehouse Bank plc (Gatehouse), the London-based Shariah compliant wholesale investment bank, has completed the acquisition of a prime office building in Leeds, for £43.719 million.
Working closely with its sister company GSH Kuwait, Gatehouse delivered an investment opportunity to its Gulf clients, it says will provide an average cash yield of 9.1 per cent per annum net of all fees, costs and local taxes, with distributions to be paid monthly over a three-year investment period.
The acquisition is a six-storey Grade A office property that is currently fully let to British Telecommunications plc (BT), one of the world's largest telecommunications companies.
Sameer Al Gharaballi, vice chairman of the board of directors at Gatehouse Bank, said: "GCC investors have a raised awareness about investment products, and we understand that they undertake a prudent approach to balancing risk and reward when making important investment decisions.
"Knowing that their investments are placed in solid asset classes is a primary concern for our clients, and with the BT office acquisition, Gatehouse has continued to meet the requirements of its investors and nurture their long-term investment goals.
"It is also pleasing to see a strong investor interest and engagement in the real estate investment opportunities we have presented to the market.
"For the benefit of GCC investors who are keen to develop and diversify their portfolio of investments in UK commercial property, GSH and Gatehouse remain open to discussion with clients who want to take first mover advantage in these deals while limited subscription is available".
Philip Churchill, head of real estate and asset finance at Gatehouse, added: "It is clear that the appetite from GCC investors for prime real estate investments remains unabated, and we look forward to working on further acquisitions in the near future."
According to the Financial Times, in the last five years investors in the Arab world spent £1.48 billion ($2.2bn) on UK commercial property, 16 per cent of all foreign investment in the sector.
A combination of a favourable currency exchange in sterling, attractive property prices and GCC governments' strong financial reserves has prompted increased interest in UK real estate activity.
