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Continues diversification of real estate offering and investment opportunities for GCC investors across global markets
Manama - Ibdar Bank ("Ibdar"), the Bahrain based wholesale Islamic investment bank, today announced that it has made a £8 million investment in a prime new residential project, Angel Gardens, to be developed in Manchester's city centre, UK.
Angel Gardens, consisting of residential 458-apartments and a total development value of £124 million, forms part of the wider NOMA re-development project aimed at transforming Manchester city centre. At a cost of £800 million, the NOMA project aims to renovate and re-introduce more than 400,000 square metres of new office, retail and leisure in addition to 4 acres of outdoor spaces.
Angel Gardens, located in close proximity to the city's main transport interchange, central shopping district and financial centres, has been designed to be a leading purpose built Private Rented Sector "PRS" development - a market segment with significant demand and high rates of growth. The number of households in the private rented sector in the UK has more than doubled since 2001, rising from 2.3m to 5.4m by 2014 accounting for around 20% of the total number of households. PwC and others project that this trend will continue with an additional 1.8m households becoming private renters by 2025 supporting the development and success of schemes such as Angel Gardens, which has been designed to provide an unrivalled offer as one of the most desirable residential addresses in Manchester.
The development is being funded through a combination of equity invested by Ibdar and other co-investors and senior debt to be obtained from one of the Banks. Forecasts indicate an expected income return through operations starting at 9.1% on stabilized income, rising to 10.8% per annum after three years of stabilised operations and a targeted IRR of +15% over a five year investment period.
Commenting, Mr. Ahmed Al-Rayes, Acting CEO of Ibdar Bank said, "In line with our strategy, we continue to identify and invest in prime global real estate with the UK market constituting an area of strong and ongoing interest for the Bank. We are especially pleased to announce this latest transaction in Manchester, which is not only the UK's second largest city and commercial centre, but also the fastest growing regional centre in the UK today."
Mr. Al-Rayes continued, "With this investment, we are able to leverage and build on the positive dynamics of the private rented sector in the UK and, in particular, strong residential rental growth trends and demand in key regional cities. In Manchester, which is home to over 2.5 million people and more than 7.5m people living within less than one hour's commute, we see strong and rising residential demand combined with a gap that exists for high quality, new build residential accommodation. Given these factors, we are confident that this is a compelling investment for the Bank and our GCC investors looking for further portfolio diversification, steady income generation and potential for upside value appreciation."
Ibdar Bank is active in the regional and global real estate markets. Today the Bank, in addition to the UK market, is evaluating opportunities in Europe and the United States as well as its home MENA markets. The Bank is also an active private equity investor and has extensive experience in sectors including aviation, infrastructure, oil & gas, maritime and retail, among others.
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About Ibdar Bank
Ibdar Bank ("Ibdar") is an Islamic investment bank incorporated in the Kingdom of Bahrain, where it operates under a wholesale Islamic banking license and is regulated by the Central Bank of Bahrain.
The Bank has USD300 million in paid up capital, an asset base in excess of USD400 million - as at end of September 2014 - and significant funds for deployment. Ibdar is engaged in private equity, capital markets and real estate, activities through which it aims to generate diversified and recurring income streams for the Bank, its shareholders and co-investors.
Geographically, the Bank's focus is on the GCC and MENA region including Turkey. It also transacts in Southeast Asia and select developed markets on an opportunistic basis. Ibdar has a significant expertise in areas such as Aviation, Infrastructure, Maritime, Oil & Gas, and Real estate, among others.
The Bank was created from the first three-way merger in the Islamic banking industry between Capital Management House (CMH), CAPIVEST and Elaf Bank in 2012 and was then re-launched as Ibdar Bank in November 2013.
For further information, please visit: www.ibdarbank.com
Media Contacts
Ibdar Bank
Najla Abdulaziz
nabdulaziz@ibdarbank.com
+973 17 510090
FinMark Communication, GCC
Zahraa Taher
ztaher@finmarkcoms.com
+973 17 749 759/+973 39630997
Sawsan Fraidoon
sfraidoon@finmarkcoms.com
+973 17 749 759/+973 32220413
© Press Release 2016
