Bahrain-based investment bank Gulf Finance House has sold its UK investment fund Gulf Atlantic Real Estate (GARE) to Deutsche Bank for £170m.
Gulf Finance said the UK’s first Islamically structured fund realised an average return to clients of 37% over a holding period of three and a half years.
It was closed to new investments after buying seven office properties in business parks in the South East and Midlands.
GARE I and II, a separate fund launched in 2003 to target industrial properties, were the first UK products to remain within Islamic law and offer a tax-efficient means of investment.
Esam Janahi, GFH chief executive and board member, said: “This profitable sale is testimony to the skill and experience of our real estate investment team.
“Once again, the team has delivered substantial market-leading returns for our clients from this particular type of real estate asset.”
Peter Panayiotou, GFH deputy chief executive and head of investments said: “The UK commercial real estate market has been very buoyant, and we took the decision to dispose of the portfolio after a direct approach from Deutsche Bank.”
References: EGi News 26/07/06
