Sidra Capital (Sidra), a CMA regulated Shariah compliant financial services company based in Saudi Arabia and Gatehouse Bank (Gatehouse), an FSA regulated UK-based Shariah compliant bank specialising in UK real estate, announced a first round of net dividends distribution of 7.0% annualised for 100million Pound Sterling UK Real Estate Fund (SURF or Fund).
Higher than SURF’s targeted distribution of 6.5%, the current distribution trend is expected to be maintained for the duration of the Fund. The distribution was made from income generated by SURF’s previous acquisitions; namely the Co-operative Distribution Unit, Huntingdon, Cambridge and TDG Distribution Centre in Glasgow.
A shining example of Saudi – UK partnership, the Fund draws on the key strengths of the two partners – Sidra’s comprehensive knowledge of alternative investment fund activities in the Middle East and Gatehouse’s real estate expertise in the UK.
“The distribution marks a significant milestone for SURF. The higher than expected dividend is a strong endorsement of the conservative investment strategies put together by the Gatehouse and Sidra teams specifically for Middle Eastern investors,” Hani Othman Baothman, Managing Director and Chief Executive Officer of Sidra and a Board Member of SURF, said.
Ammar Zahran, Chairman of the Board of Directors of Al Murjan Holdings and a significant investor in SURF expressed his pleasure on the return distributed by SURF.
“Given the conservative investment strategy adopted by the fund, the distributed return is indeed commendable. I have complete confidence in SURF’s investment team and look forward to future returns as they look to acquire additional properties.”
“SURF has been created specifically for those investors looking for exposure to the UK real estate market. The Fund identifies secure, income producing, low risk investment opportunities in the relative safe haven of the UK market for international investors. SURF’s returns are secured against high quality properties let to financially strong tenants on long lease terms providing security of income over the projected five year life of the fund,” Adam Cavanagh, Head of Real Estate, Gatehouse Bank said.
Sidra Capital, a CMA regulated Shariah compliant financial services company based in Saudi Arabia with extensive experience in real estate fund activity, has partnered with Gatehouse Bank, an FSA regulated UK-based Shariah compliant bank specialising in UK real estate. Through their combined expertise, these institutions have brought The Sterling United Kingdom Real Estate Fund (SURF) to the investor market with a view to reaching a target equity size of GBP100million. SURF is registered with the CMA in Saudi Arabia.