REAL ESTATE – A new Sharia’a-compliant real estate fund has been launched by the European Islamic Investment Bank.
Knight Frank Investment Management will source real estate deals on behalf of the EIIB Pan-European Islamic Real Estate Fund and manage the properties after the purchase. The fund will "directly purchase commercial real estate assets in the office, retail and industrial sectors in and around major cities in the UK (25% of investments) and Western, Central and Eastern Europe", EIIB said in a press release.
The fund’s investment committee "will be advised by EIIB’s existing Sharia’a Supervisory Board, an independent body of recognised specialised scholars in Islamic commercial jurisprudence".
Investments in the fund are targeted to reach between €200 million to €500 million at launch and the fund "may consider a listing on a Stock Exchange after the initial capital is deployed", EIIB said.
"The Fund’s target return is >11% IRR per annum net of fees and expenses, and will be targeting income of >7% per annum net of fees and expenses."
The launch is part of the roll-out of EIIB’s own Sharia’a compliant investment fund range, covering the real estate, hedge fund and private equity asset classes, and including capital-protected structured products.