Manama: Tadhamon Capital, the Bahrain based Islamic investment company announced its successful exit from Paris Gardens, its first investment in a Central London student accommodation property. The sale of the 253 bed property, which was developed in a joint venture with McLaren Property in July 2012, saw investors of Tadhamon Capital achieve more than 70% return on their invested capital within a 30 month period.
The acquisition of Paris Garden formed part of the Tadhamon Capital & Apache Capital Partners’ (TC-AC) managed Social Infrastructure Investment Platform with a current gross AUM of over £350 million. Since completion in the summer of 2013, the property was fully let and has generated a stable net income of 8% to investors. The sale of the property generated an IRR in excess of 25%, significantly higher than the original projected returns of 16.5% IRR.
Simultaneously, in an off-market transaction with Apache Capital, Tadhamon Capital has entered into a JV agreement for the development of a new, high-quality student accommodation, located at the centre of Kingston-Upon-Thames (South London). The project’s gross development value is in excess of £45 million with projected returns targeted to exceed 15% IRR over a five year investment period. The property will include 210 elegant studio rooms of varying sizes and a 4,835 sqft of commercial space.
“Tadhamon Capital has been investing in the UK real estate market since its inception in 2009 and has developed a strong track record in the Social Infrastructure Platform which focuses on investing in student accommodation, schools, care homes, and social housing units. Today this platform has more than £350 million of assets under management. Student accommodation remains a particular focus of this platform. Currently, we have more than 1,500 beds across London, Cambridge, Ipswich and Kingston, which continue to deliver attractive dividend yield levels and also achieving solid capital gains,” Hesham AlGassab, Executive Director of Investments at Tadhamon Capital, said.
Tadhamon Capital is looking to build on its knowledge and expertise gained from its social infrastructure investing in UK residential market where it continues to see great opportunities both the prime Central London and Greater London locations. The Company aims, over the next year, to increase it are our assets under management in the UK to more than £500 million.
“We are delighted to announce both the completion of another successful exit and investment in the UK market. Over the past year, we have worked hard to both ensure we were positioned to achieve maximum value from our current investments as well as continuing to look to identify new opportunities to deploy capital and create opportunities for Tadhamon Capital and our investors. Also having undergone a restructuring in the summer of 2014, we have seen great commitment from Tadhamon International Islamic Bank (TIIB), of which we are subsidiary, and HSA Group, our main sponsor. Working closely with the Group and TIIB, we continue to leverage their global market presence and reach in order to enhance our ability to effectively compete against larger international players and to secure attractive investment opportunities like the one we have just announced and exited. We have a strong pipeline of transactions which we are evaluating and look to build our current portfolio of assets across the GCC, UK, and Turkey whilst also looking to expand into the US market and potentially parts of MENA region,” Ahmed Sultan, Chief Executive Officer of Tadhamon Capital, added.
“Tadhamon Capital is active in investing across all asset classes locally and in international markets with a specific focus on structuring, launching and managing new investments and products in real estate, alternative investments and treasury and capital markets.”