The newly constructed 74,146 square feet market house, in Maidenhead, UK, was acquired for £32 million, and will significantly contribute towards the Funds’ targeted return of 7% per annum. This is the third property to be successfully acquired by SURF and serves as EMEA headquarters for Adobe Systems Europe Ltd on a weighted unexpired lease term of 10.5 years. SURF continues to enjoy the support from its financiers who remain comfortable with its strategy and quality of assets acquired, which in turn are tenable lending transactions for them.
“This property was selected for acquisition due to its attractive lease profile and strong anchor tenant. Securing long-term sustainable returns from our investments serves as a key and, thanks to its positive regulatory environment, maturity, transparency and liquidity, the UK is considered to be one of the safest locations for investment in the world. By diversifying our risk across multiple asset classes, SURF’s mixed portfolio will provide an effective hedge against inflation with regular income distributions and strong potential for capital growth,” Hani Othman Baothman, Managing Director and CEO of Sidra, said.
SURF is open to both UK and international investors and draws on the key strengths of the two partners – Gatehouse’s Shariah compliant expertise in the UK’s real estate sector and Sidra’s comprehensive knowledge of alternative investment fund activities in the Middle East. It aims to acquire a diverse real estate portfolio in the UK, offering investors access to one of the world’s most transparent and well-regulated markets.
“The regional office market is an extremely resilient sector in the UK and demand from international investors is focused on large, £20 million plus lot sizes, where active asset management offers significant scope to enhance returns. This particular property offers a compelling investment opportunity and, with Middle Eastern investors in particular favouring 10 year income assets, sourcing income-producing real estate investment opportunities with sustainable returns remains a key element of our acquisition strategy,” Commenting on the acquisition, Adam Cavanagh, Head of Real Estate at Gatehouse Bank, said.
Mohammed Shokat, The British Consul General to Jeddah, hailed SURF as a stellar example of UK – Saudi partnership.
“The UK currently stands as one of the most mature, transparent, and well-regulated and liquid markets in the world, offering a number of investment opportunities for GCC investors. Saudi Arabia is the UK’s main trading partner in the Middle East, and the two have shared a long standing close economic relationship. We currently have around 200 UK-Saudi joint ventures, where the total investment is estimated to be $17.5 billion. Saudi Arabia has already been deemed a high growth market by UKTI, and ties such as this are further strengthened by financial products such as SURF,” he said.