London-based Arab Investments is close to completing over EUR 350 mln worth of deals in Germany for its two Shariah-compliant funds. This week, the investor acquired Berlin's Zehlendorfer Welle retail property from developer OFB Projektentwicklung for some EUR 70 mln, or a yield of 6.1%. The transaction includes 70% of debt, which is provided by German lender Helaba. The property, which is nearly fully let, consists of 23,000 m[sup]2[/sup] of space mostly let to C&A, Fitness First and Saturn. Lars-Oliver Breuer, managing director of Savills Immobilien Beratungs which advised the buyer, says that the deal was first signed as a forward-commitment transaction in 2007 and took almost two years to complete.
London-based Arab Investments is close to completing over EUR 350 mln worth of deals in Germany for its two Shariah-compliant funds. This week, the investor acquired Berlin's Zehlendorfer Welle retail property from developer OFB Projektentwicklung for some EUR 70 mln, or a yield of 6.1%. The transaction includes 70% of debt, which is provided by German lender Helaba. The property, which is nearly fully let, consists of 23,000 m2 of space mostly let to C&A, Fitness First and Saturn. Lars-Oliver Breuer, managing director of Savills Immobilien Beratungs which advised the buyer, says that the deal was first signed as a forward-commitment transaction in 2007 and took almost two years to complete.
'It was a quite complicated operation because of the structuring of Shariah-compliant funds,' he says. A further five acquisitions, totalling over EUR 350 mln worth of assets, are expected to close by November this year. These include two shopping centres in Berlin and the Fiat headquarter in Frankfurt.
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