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Mon 2 May 2011 12:10 PM

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UK's Gatehouse inks $87.9m deal for Rolls-Royce factory

Deal brings value of real estate portfolio to more than £200m, says Securities House subsidiary

UK's Gatehouse inks $87.9m deal for Rolls-Royce factory
Rolls-Royce Motor Cars Regional Director, Asia Pacific, Colin Kelly (C) poses with the Rolls-Royce Ghost motor-car during the launch (AFP/Getty Images)
UK's Gatehouse inks $87.9m deal for Rolls-Royce factory
Fahed Boodai, co-founder and chairman of Gatehouse Bank

Gatehouse Bank, a subsidiary of Securities House Kuwait, said Monday it had acquired the Scotland manufacturing facility of Rolls-Royce in a transaction valued at £52.7m ($87.96).

The contract brings the property portfolio of the London based Sharia-compliant bank to more than £200m ($256.8m), following deals for student accommodation and the UK headquarters of hotel chain InterContinental.

The manufacturing and logistics hub in Glasgow has been purchased with Rolls-Royce as a confirmed tenant until July 2022. According to Gatehouse, the lease has minimum fixed annual rental uplifts of 1.4 percent and will deliver an annual cash yield of 8 percent – or £4.8m – over three years.

Chairman of Gatehouse Bank, Fahed Boodai, said the company continued to create a pipeline of “high-yielding and long-income type transactions” in the commercial real estate market.

The company said in February it planned to bring a £60m ($96.77m) Islamic bond to market by the end of the first quarter and would also arrange a £25m syndicated lease financing this year.

CEO Richard Thomas said Gatehouse was also mulling the creation of a real estate investment trust and looking at opportunities in trade finance.