Wednesday, May 4, 2011

Gatehouse Bank accomplish gold standard: Rolls-Royce real estate acquisition for £52.7 million



Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank in
the City of London, has completed the £52,700,000 acquisition of the Rolls-Royce core
manufacturing and logistics facility in Scotland. Delivering an annual cash yield of 8%, or
£4.8 million over 3 years, the lease benefits from fixed rental uplifts of 1.5% per annum with
a 17 years’ of certain term income.

In the GCC, investors were quick to participate in the Rolls-Royce real estate transaction,
taking first mover advantage in a unique opportunity that was characterised by the quality
of the investment and its ability to deliver sustainable returns.

Fahed Boodai, Chairman of the Board of Directors at Kuwaiti-owned, Gatehouse Bank
commented, “Gatehouse is proud to deliver a gold-standard investment opportunity that
is a rare and extremely valuable asset to have in the market. The core manufacturing
and logistics facility purpose built for and let to Rolls-Royce plc offers a one- of-a-kind
opportunity that delivers maximum benefits to our clients.”

“The superior financial covenant of a Grade A-rated blue chip company is undisputed and
combined with the certainty and length of income provided by this transaction, these
factors strengthen the return on investments for our investors,” added Mr Boodai.

Gatehouse’s success is marked by an incredible milestone achievement, as the bank
achieves a real estate portfolio in excess of £200 million in 18 months. “These impressive
figures are a result of investor participation from a wide and diverse investor base with up
to 50% client repeat activity in transactions, as solid returns on their investments continue
to be proven,” explained Mr Boodai.

Gatehouse Bank strategy to grow and nurture its investor base is based on its ability to
respond to market needs and bring transactions to the market quickly. The performance
of the Real Estate business line continues to generate productive gains, both reflected in
existing and new investor uptake in transactions by GCC high-net worth and institutional
investors.

Mr Boodai also emphasises, “With a strong understanding of UK market fundamentals
and our ability to source and secure high yielding and sustainable returns in London and
UK-based activity, we have accomplished our objective to deliver rewarding, unique
opportunities that have led to our credible position as a leading provider of Shariah
compliant real estate in the UK.”

The Rolls-Royce core manufacturing and logistics property covers 541,962 sq ft and is built
and let to Rolls Royce plc until March 2028.

Gatehouse Bank provides an attractive portfolio of property investments for investor clients,
originating, and structuring of investments in a Shariah compliant manner.

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