Investate buys prime London site for EUR 474m redevelopment

Investate Realty, a Bahrain-based real estate investment company, has announced the acquisition of a 4.5-acre (1.82-hectare) waterfront site in central London called Tideway Industrial Estate, marking its first investment in the UK capital. Investate plans to invest £375mln (around EUR 474mln) in redeveloping the site, to be renamed Tideway Wharf, for residential use.

Located on the south bank of the river Thames, the site is adjacent to the Battersea Power Station site that is currently being masterplanned by Uruguayan architect Rafael Vinoly for a large-scale development. Tideway Wharf is located at the heart of the Nine Elm corridor which has been designated as an Opportunity Area by the Greater London Authority in its bid to attract new housing. Nine Elms has been earmarked for redevelopment from an old light industrial area into a modern residential/commercial one, with Tideway Wharf at its heart.

Investate said it will engage a leading architect for the development in the near future. Work is expected to commence next year and take four years. The development will be marketed to high net worth individuals globally, with a specific emphasis on those in London, Moscow and the Middle East.

Commenting on the acquisition, Investate CEO Salah Nooruddin said: 'To have secured such a rare development site as Tideway is a fantastic way to commence our expansion into Europe. We believe this is an excellent time to be entering the London market for a number of factors. London's position as the financial capital of the world makes it the preferred residential destination of the world;s elite and as such, over the long term, its limited supply of central prime residential real estate will always be outstripped by demand.'

Investate Realty was established in 2007 as a Shariah-compliant financial institution offering investment opportunities in real estate development, income-producing assets, private equity and corporate finance. It holds a portfolio of real estate assets in Dubai and Bahrain with a final development value of around $2bn.