IslamicFinance.de

Property developer Sigma Capital Group has formed a 700 million pound ($1.14 billion) joint venture with Shariah-compliant Gatehouse Bank for the development of up to 6,600 new rental homes in Britain. The joint venture will initially invest 200 million pounds (approximately $326 million) in the construction of 2,000 residences in Liverpool and Salford in northwest England. Under the terms of the agreement, Gatehouse will deliver the equity element of the venture. Britain aims to address its imbalance of housing supply and demand by providing loans for the purchase of homes and by financing a 1 billion pound (about $1.6 billion) Build-to-Rent fund to encourage investment into rental housing.