Real Estate

MAG Lifestyle Development to accept Sharia-compliant OGC for #property

#UAE-based MAG Lifestyle Development has announced that it will accept OneGramCoin (OGC) as payment for real estate it sells. This move offers real estate investors an opportunity to utilize their digital assets while also welcoming OGC into the mainstream with a practical application in the property sphere. Bitcoin and other digital currencies are struggling to enter the mainstream in the Middle East, where the fundamentally speculative and high-risk character of cryptocurrencies does not go with the local investment culture. As the first Islamic Sharia-sanctioned digital currency, OGC is entering to fill this void. Each OGC is supported by a gram of gold, something that makes sure the cryptocurrency stays capitalized and stable. According to MAG, trade will go live in June 2018. Investors will buy OGC to the price of the property and get a 5% discount on the property cost consequently. OGC will then go to MAG based on the payment plan, which is 35% over six to nine months and 65% on completion at 2019’s end.

#Gulf #Islamic #Investments acquires two logistics facilities

The Gulf Islamic Investments, a Islamic financial services company based in the UAE, has revealed the acquisition of nearly one million square feet of logistics facilities on behalf of its investors, at the price of 144 million US-Dollar. The two state of the art logistics centres, are located in Dortmund Germany, and serves as key logistics centre of Amazon supplying goods to 29 other facilities. These newly built facilities are leased out to Amazon on a long-term lease that cannot be cancelled with regular rental uplifts linked to Germany CPI.

Halk REIT issues #Turkey's first #sukuk

Halk Real Estate Investment Trust (REIT) has issued Turkey's first sukuk with a nominal value of TL 100 million ($26.12 million) through Halkinvest. The return of the 87-day lease certificate will be realized at 13.25% at the end of the maturity period. Halk REIT General Manager Feyzullah Yetgin said that the widespread use of real estate-based financial products would make a great contribution to the real potential of the sector. Halkinvest General Manager Serdar Sürer said that the lease certificate issuance transaction executed on behalf of Halk REIT was their 60th capital market issuance transaction this year. He also said that they would continue to add value to their business partners with products based on the real economy.

Dubai: MAG to sell #property via Sharia-compliant OneGram

Dubai's MAG Lifestyle Development will offer customers the opportunity to purchase properties using OneGram, the first Sharia-compliant crypto-currency. Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development stated that customers will benefit from the growing potential of crypto-currencies with OneGram. Each OneGram Coin (OGC) is backed by a gram of gold, which ensures that it remains a fully capitalised and stable digital currency. In compliance with Islamic Sharia law, it is also zero interest, profit-loss sharing, and non-speculative as it is pegged to gold. OneGram is also simple to buy and trade and will go live in June 2018. Mohammed Ibraheem Khan, co-founder of OneGram said this was the first real-world application for OneGram and the company was proud to be taking this step with MAG Lifestyle Development.

King Abdullah Financial District set for Phase I launch

The first phase of the King Abdullah Financial District project is due to be launched next year. The business hub in Riyadh has been under construction since 2006 and will soon get a fresh lease of life under the management of the kingdom’s sovereign wealth fund. The Saudi Public Investment Fund (PIF) will take over the management of the King Abdullah Financial District from the Public Pension Agency. As outlined in the Saudi Vision 2030 plan, the new hub is to be an economic free zone with visa exemptions and a direct connection to the airport. The government is now exploring new incentive options to attract financial institutions to occupy space in the district. The 73-building development has been restructured to reduce office space and increase the number of residential units.

Maybank Islamic launches rent-to-own #housing #scheme

Maybank Islamic has launched a rent-to-own (RTO) housing scheme. Named HouzKEY, the product is targeted at first-time house buyers and those who want to upgrade their homes. According to Maybank Islamic's CEO, Datuk Mohamed Rafique Merican, HouzKEY addresses the growing issue of concern for affordable home ownership. The new product will initially be made available to Maybank employees and is slated to be rolled out to the general public in early 2018. HouzKEY is the first such RTO product in the country fully enabled on a digital platform, with the application and submission of supporting documents being required to be made online. To be eligible, applicants should have a household income of at least RM5,000 and commit to a minimum rental tenure of five years. They will have the option to purchase the property after one year at a pre-agreed price.

#Saudi #fund ‘to take over Riyadh financial district’

Saudi Arabia's Public Investment Fund (PIF) has finalized a deal to take over the management of the King Abdullah Financial District from the Public Pension Agency. As outlined in the Saudi Vision 2030 economic reform plan, the financial district is to be an economic free zone with visa exemptions and a direct connection to the airport. The first phase of the project is due to launch next year with plans to host the G-20 meeting there in 2020. The government is now exploring new options to attract financial institutions to occupy space in the district. The 73-building site has been restructured to reduce office space and increase the number of residential units. PwC and local regulator Capital Market Authority are among the companies due to take space in the area.

Shepherd and Wedderburn secures Islamic finance deal

Shepherd and Wedderburn has completed the Shariah-compliant refinancing of high-value office accommodation in Aberdeen. The properties, which total 159,170 sq ft of floor space, are fully let to the oil and gas service provider Petrofac as its North Sea office headquarters and NHS Scotland. The funding was completed by way of a commodity murabaha facility from an established international bank. Peter Alderdice, a senior associate at Shepherd and Wedderburn, said the team was pleased to have used its expertise in Islamic finance to help secure the refinancing of two of the largest commercial properties in the city.

Gulf Finance House begins new #land #acquisition drive

Even though its Tunis Financial Harbour (TFH) mega-project has barely got off the ground, Bahrain's Gulf Finance House (GFH) is already looking to acquire adjacent land.

Dubai's Emirates Reit plans debut #sukuk of at least US$300m this year: source

Dubai-based Emirates REIT plans to issue a debut Islamic bond of at least US$300 million by the end of this year. The Syariah-compliant real estate investment trust (REIT) has called a shareholder meeting on Nov 23 to discuss the planned sukuk, which could be issued shortly after that date. The company's total debt as at June 30 was about US$300 million. The loan-to-value (LTV) ratio of the REIT stood at 36.8%, which means there is room for issuance larger than US$300 million, the source added. The company had a portfolio of US$772 million at the end of June. Its portfolio includes mixed-use properties, office buildings and schools in Dubai.

Guidance Residential CEO Talks #Fintech

The strategy of 'technology first' and the automation of everything is not how businesses usually start. The traditional barriers have been human and financial capital, as well as various regulatory barriers. Fintech starts with anyone’s business and applies a 'technology first' approach to that model. Islamic finance in the US has taken hold. There are several institutions offering Islamic financial products. They all have websites, a comprehensive online foundation and a robust social media presence. That used to be enough once you have overcome the traditional barriers to entry, but that is no longer the case. Experts predict that in the near future, no enterprise will succeed and flourish without the right fintech services in place. Guidance Residential, a leader in the US Islamic home financing market, was among the first to identify the trend and face that challenge.

Ibdar Bank and partners acquire Boston office building for $48mln

#Bahrain-based Ibdar Bank has acquired a prime office building in Boston, USA. The deal is a collaboration with US property manager Lincoln Property Company and asset manager Ritz Banc Group and the total size is $48 million. The Boston property is a single-let building leased to Amazon Robotics, a wholly-owned subsidiary of Amazon Inc. The area is regarded as the "technology corridor", and is home to many well-known technology-related companies making it the epicentre of robotic innovation. The bank’s head of real estate, Bassam Kameshki, said the Boston metropolitan area has witnessed substantial growth within the technology and medical sectors. He ensured that Ibdar Bank will be working to add further value to the property and ensure a profitable exit scenario.

#Saudi developer Jabal Omar to raise 4b riyals via #sukuk

Saudi Arabia’s Jabal Omar Development plans to raise 4 billion riyals (Dh3.91 billion or $1.06 billion) with local currency sukuk issues. Bank Al Bilad has been hired to arrange the fund-raising, but other banks are likely to have leading roles too. The developer’s flagship project, Jabal Omar, is within walking distance of the Holy Mosque in Makkah. It includes commercial malls, residential units and hotels over an area of 230,000 square metres. Saudi Arabia’s real estate sector was hit hard last year, with prices declining 8.7%, as a result of the government’s austerity measures after a slump in international oil prices. Jabal Omar missed in January last year the first repayment, worth 650 million riyals. It amended the terms of the loan in February 2016 to postpone the date, the first payment on the facility is now due in 2019 and the loan will mature in 2024. Jabal Omar has also borrowed 4 billion riyals in February 2015, then 8 billion riyals in September 2015. It is not clear whether the planned sukuk would be used as new funding or to refinance some of the company’s existing debt.

Qatari investors focus on #US #property market

Qatari investors are increasingly looking for opportunites in the booming US propery market. Just Real Estate (JRE) has recently launched its new US portfolio, while QInvest announced its US mulitifamily residential-focused real estate fund Magnolia Real Estate Fund. The fund completed its first acquisition of an outstanding asset in Colorado, US. QInvest has been investing in Western Europe, UK and US for the past 5-6 years. JRE recently added two upscale addresses in Miami and New York City to its ever-growing portfolio of luxury developments in Qatar. Qatar, as a country, is becoming a big player in the New York City’s real estate market, with unconfirmed reports showing Qatar Investment Authority ranking the city's ninth-largest commercial property owner.

QInvest and GCC investor launch “Magnolia Fund” to invest in #US #residential #market

#Qatar's QInvest announced its collaboration with a GCC institutional investor to create the Magnolia Real Estate Fund. The fund has already completed its first acquisition of an asset in Colorado, USA. The acquisition was funded using an Ijarah property debt structure. The Magnolia Fund is focused on investing in the fast-growing, income-generating multifamily residential market in the US. The Fund is building a portfolio of assets in the sector and plans to make more acquisitions during 2017. The newly acquired asset is located in Fox Creek, Thornton, a northern suburb of Denver, Colorado. The asset is projected to yield net cash in excess of eight per cent on annual basis and a net IRR in the range of 12-13%. The multifamily manager TruAmerica has co-invested in the asset and will oversee the day-to-day operations of the property.

Jadwa Investment launches Jadwa #REIT Al-Haramain Fund

#Saudi Jadwa Investment announced the conclusion of the public offering of its first Shariah-compliant Real Estate Investment Traded Fund, Jadwa REIT Al-Haramain Fund. The new fund will invest in real estate properties in Makkah and Madinah. The REIT, which has an initial size of SR660 million ($176 million), offered SR360 million worth of units to the general public. Over 5,800 individual and intuitional investors subscribed for SR4.53 billion during the offer period, resulting in a 1.257% coverage of the offered units. Haitham Al-Ghannam, head of alternative investments at Jadwa, said the initial portfolio of the REIT would comprise of two hospitality assets, a four-star hotel and a pilgrim accommodation. Both properties are located in Makkah with a combined capacity of 984 hotel rooms. At its initial offer price of SR10 per unit, the REIT offers net initial yield of 5.2%.

Positive outlook for Islamic #REITs in the region

With the continuous growth of Islamic banking in the GCC, products such as Islamic Real Estate Investment Trusts (I-REITs) have started to emerge. Al Mahrab Tower REIT was the first private I-REIT in Kuwait in 2007. Following that, Dubai launched its first I-REIT (Emirates REIT) in 2010 and Bahrain listed its first public I-REIT (Eskan REIT) in 2017. Emirates NBD has also recently listed ENBD REIT and due to strong demand the offer was oversubscribed. Firms responded to this growing demand, including IdealRatings, which launched its first Sharia-compliant REIT index in 2015. While the future of I-REITs may seem positive, there are many challenges that lie ahead. It is important for asset management firms to devise efficient and logical I-REIT investment methodologies. This needs to be supplemented by sound ethical principles to ensure the sustainable growth of I-REITs in the region.

#Kuwait's Warba Bank boosts its #realestate investments portfolio & acquires a facility of KIA Motors in #UK

Warba Bank has recently purchased a newly constructed UK vehicle imports-exports facility strategically located next to Immingham port. The property is leased to KIA Motors UK for unbreakable lease term of 20 years. The facility has a capacity of over 15,550 cars and totalling 86.68 acres (35.08 hectares) of land. In addition, the site also includes a warehouse space of 63,515 ft.² (5,901 m²), facilitating distribution, refurbishment, valet, inspection, refuelling, offices and gatehouses. The site receives on average c.1,200 vehicles a week. KIA anticipate 100,000 UK car sales target by 2020. Warba Bank’s CEO, Shaheen Hamed Al Ghanem, said this acquisition was one of the best risks mitigated real estate investment of the bank, generating a steady and secured return from unbreakable long lease. He elaborated that the investment plan for 2017 is highly ambitious and the bank is looking for more international real estate investment opportunities in USA, UK and other continental European countries.

Bitter #battle for #Sabana# Reit comes to head at April 28 EGM

It seem like the ongoing bitter battle between the managers of Sabana Shariah-compliant Reit and some disgruntled investors will come to a head at an extraordinary general meeting End of April which has been called at the behest of 66 unit holders who began a campaign against Sabana Real Estate Investment Management.
Reason was dissatisfaction with the Reit manager's lacklustre performance and 3 years of falling distributions per unit. At the EGM 4 resolutions will be tabled one of which ask for Sabana Real Estate Investment Management to be removed.

Syndicate content