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Wed 2 Nov 2016 01:59 PM

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Bahrain's Ibdar inks $29.5m deal for UK student homes project

Islamic investment bank says accommodation for 200 students is set for completion in time for 2018-19 academic year

Bahrain's Ibdar inks $29.5m deal for UK student homes project

Bahrain-based Ibdar Bank has announced the closing of a $29.5 million joint venture deal to develop a prime purpose-built student accommodation project in Southampton, a city on the south coast of England.

The Islamic investment bank said in a statement that thedevelopment will provide accommodation for more than 200 students in a mixture of one bedroom, two bedroom and three bedroom apartments.

The project is expected to be completed in time for the 2018-2019 academic year, it added.

Ahmed Al-Rayes, acting CEO of Ibdar Bank said: “The acquisition is in line with our strategy to identify and invest in prime global real estate within the UK market, which is an area of strong and ongoing interest for the bank.

"This latest transaction in student housing in the UK offers investors exposure to an alternative and resilient asset class.”

Bassam Kameshki, director of real estate, added: “The UK remains an investment destination of choice for GCC investors, and this deal in a defensive sector is expected to generate attractive returns. We have chosen Southampton as there is an undersupply of quality, PBSA schemes and a shortage of accommodation for college students."

Ibdar Bank was formed in 2013 when three Bahrain-based Islamic banks - Elaf Bank, Capivest and Capital Management House - merged.

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