German fund manager Difa has sold the Sanctuary Buildings in London SW1 for £143m.
The sale was made to a consortium of investors including Taib Bank (Bahrain) and Dominion Asset Management (Hong Kong).
The deal was conducted in a Shari’ah (Islamic law) compliant manner with equity raised via through two Sukuk issues (Islamic bonds) and the senior debt, provided by Lloyds TSB, invested using a Musharaka structure.
The 227,098 sq ft building at 16-20 Great Smith Street in the Westminster conservation zone went to market via Savills in April with a £135m price tag.
Gamble & Spencer arranged the loan, while Pelham Associates, based in London, advised Dominion Asset Management.
Norton Rose advised LTSB. Linklaters advised Difa.
Taylor Wessing and Jones Day advised the consortium. Taylor Wessing’s Hamid Yunis said: “This was an innovative transaction and was the first time this particular structure has been used.
“The combination of the Musharaka and the Sukuk issues allowed our client to have all of the benefits of a traditional financing whilst remaining Shari’ah compliant.”
References: EGi News 10/08/05
