AIMS Investments has acquired a portfolio of four residential rental schemes in Manchester city centre from Beech Holdings for £39m.
The Saudi Arabian investor purchased the 163-home portfolio through Cedar Tree Investments. Shariah funding for the acquisition was sourced from the UK arm of Abu Dhabi Islamic Bank (ADIB UK).
The portfolio includes the Grade II listed Basil House on Portland Street (pictured), Salisbury House on Princess Street, which includes 3,300 sq ft of occupied retail space, and 51 King Street and 341 Great Western Street.
Abdulaziz Albassam, chief executive of AIMS Investments, said: “The acquisition of this portfolio of high-quality assets, located in prime locations within a major regional market, is an important step towards realising the investment strategy for Cedar Tree Investments in the UK.
“We remain committed to establishing a sizeable portfolio in the UK over the coming two to three years.”
Paul Maisfield, head of real estate at ADIB UK, said: “We continue to see strong demand from Middle Eastern investors for the yield offered by UK real estate.
“The ability to provide our clients with attractive Shariah-compliant financing solutions in a short time frame is core to ADIB UK’s offer.”
Knight Frank advised Beech Holdings’ property and lettings division Manchester Apartments on the sale.
According to Knight Frank data, annual rental growth in the Manchester residential rental market (including PRS and private buy-to-let) is 1.6%.
It forecasts total capital invested in the PRS sector will reach £75bn by 2025, rising from £35 bn in 2019.
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