Rasmala Regulatory News (RMA)

8 Dec 2006 17:31

European Islamic Investment BankPLC08 December 2006 8 December 2006 European Islamic Investment Bank Plc launches Sharia'a compliant real estatefund European Islamic Investment Bank Plc ("EIIB"), the first independent, Sharia'acompliant Islamic investment bank to be authorised and regulated by the UKFinancial Services Authority, today announced the launch of a Sharia'a compliantreal estate fund. The EIIB Pan-European Islamic Real Estate Fund ("the Fund") is structured as atax-efficient Sharia'a compliant fund which will directly purchase commercialreal estate assets in the office, retail and industrial sectors in and aroundmajor cities in the UK and Western, Central and Eastern Europe. EIIB hasappointed Knight Frank Investment Management as the Property Fund Adviser whowill source real estate deals and actively manage the properties thereafter. The Fund takes the form of a closed-end fund with a fixed term of five yearsplus up to two years wind-down. With a target size of between €200 million to€500 million at launch, the Fund may consider a listing on a Stock Exchangeafter the initial capital is deployed. The Fund's Investment Committee will be advised by EIIB's existing Sharia'aSupervisory Board, an independent body of recognised specialised scholars inIslamic commercial jurisprudence. The Fund's target return is >11% IRR per annum net of fees and expenses, andwill be targeting income of >7% per annum net of fees and expenses. The Fundplans to invest around 25% in the UK, representing high quality "core"properties yielding 5-8% IRR per annum, with around 75% invested in ContinentalEuropean "value-added" properties yielding 12-15% IRR per annum. EIIB will be a co-investor in the Fund. Jeremy Beswick, Head of Asset Management, EIIB, said: "The launch of this fund is a significant milestone in the development of EIIB,representing an example of EIIB's intention to offer sophisticated anddifferentiated products to the Islamic investments marketplace. We believe therewill be significant investor interest in this fund, which will deliver toinvestors a diversifed commercial property portfolio including exposure to therapidly-developing markets in Central and Eastern Europe." The launch is part of the roll-out of EIIB's own Sharia'a compliant investmentfund range, covering the real estate, hedge fund and private equity assetclasses, and including capital-protected structured products. EIIB is also developing a number of derivative and asset securitisation productsand expects further new issue mandates in the coming months. EIIB will alsopartner with other financial institutions, both Islamic and conventional, tocreate bespoke Sharia'a compliant investment products according to demand. Ends EIIB Pan-European Islamic Real Estate Fund - Other Facts: Fund Structure: The Fund takes the form of a Cayman Islands-registered fundcompany, owning 100% of a Luxembourg-domiciled holding company, with subsidiarySingle Purpose Vehicles holding the real estate assets in each target country. Leverage Policy: Sharia'a compliant financing will be deployed at appropriatelevels throughout the life of the Fund, with a potential maximum leverage of 75%anticipated at the Fund's launch. Minimum Investment: The minimum investment is €250,000. The Fund will be valuedand priced in euros. Dividend Policy: The Fund intends to pay all net dividend income received toshareholders each quarter. About EIIB: EIIB was incorporated in January 2005 and received its authorisation by the FSAon 9 March 2006. On 3 April, it opened for business, and on 17 May completed itsIPO and was admitted to London's AIM market. Headquartered in London, EIIB's range of products and services will include thefollowing Sharia'a compliant investment banking activities: - Islamic Treasury and Capital Markets - Asset Management, including Private Banking - Structured Trade Finance - Corporate Finance and Advisory. EIIB aims to deliver a full choice of alternative investment opportunities,enabling Islamic investors to construct balanced and sophisticated portfolioswhich can access a full range of asset classes internationally. EIIB will seek to service a market for Sharia'a compliant investment bankingservices in Europe, the Middle East and Asia that it believes has beenunder-exploited by conventional and Islamic banks, and by non-bankinginstitutions. EIIB intends to become a major participant in the market forIslamic securities, treasury and investment products, which is currentlyexperiencing rapid growth. The founding shareholders of EIIB include Gulf based individuals andinstitutions, including a number of Islamic banks, as well as individuals andcompanies based in Europe. This News Release is not an offer of units in the Fund nor is it to beinterpreted as being such an offer. Units in the Fund will be offered only onthe terms and conditions set out in the offering memorandum for the Fund. Theoffering memorandum will be released on a private basis to selected partiesonly. Further information: EIIB plc Jeremy Beswick Tel: 020 7847 9970 Fishburn Hedges Mark Tierney/Michelle James Tel: 020 7839 4321 This information is provided by RNS The company news service from the London Stock Exchange