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Arab Investments Limited
11 Berkeley Street,
2nd Floor,
London
W1J 8DS

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Topic: General News - Publication: Property EU

Arab Investments to close €350 million of deals in

    London-based Arab Investments is close to completing over €350 million worth of deals in Germany for it's two Sharia-compliant funds.  This week, the investor has acquired Berlin's Zehlendorfer Welle retail property from developer OFB Projektentwicklung for some €70 million, or a yield of 6.1%.  The transaction includes 70% of debt, which is provided by German lender Helaba.  The property, which is nearly fully let, consists of 23,000 m sq. of space mostly let to C&A, Fitness First and Saturn.  Lars-Oliver Breuer, head of investments at Savills Germany which advised the buyer, says that the deal was first signed as a forward-commitment transaction in 2007 and took almost two years to complete.  'It was quite a complicated operation because of the structuring of Sharia-compliant funds,' he says.

    A further  five acquisitions, totalling over €350 million worth of assets are expected to close by November this year.  These include two shopping centres in Berlin and the Fiat headquarters in Frankfurt.  'Arab Investments has so far invested a total of €600 million for it's two German funds and is currently looking for more 'opportunistic' investments in the country', Breuer says.  The company wants to set up a 50/50 joint venture for the development of commercial assets and is currently in talks with a potential partner for a scheme in the Rhein area.

    Breuer: 'The firm chose Germany because of stability and size of the market.  As an example, they have just revalued their German portfolio and the correction in value has been less than 4%.