The acquisition, valued at £4 million ($6.4 million), will bring the gross asset value of the Fund to over £20 million ($31.8 million). The property is a multi-let site with six tenants, which will be made up of internationally recognised names, including a multinational electrical goods supplier, an international leading high street chemist brand and a FTSE 250 building supplies company.
Derek Weist, Director, Asset Management at BLME, said: "This acquisition geographically broadens the Fund's portfolio. In the current environment we are continuing to see a number of excellent opportunities to acquire good quality assets at yields that achieve or even exceed our target return. We expect this momentum to continue and for the Fund to continue to attract investors looking for a high yielding, cash generative opportunity to diversify their property exposure away from central London."
An important milestone has been the addition of £3.6 million ($5.7 million) of leverage into the Fund from an international financial institution. Derek Weist added: "The leverage we have received further enhances the attractive investment opportunity offered by the Light Industrial Building Fund to institutional as well as individual investors. We anticipate that the leverage will increase to around 40% to 50% of the value of the assets held by time the Fund is fully invested."
The Light Industrial Building sector is well supported by the economy with the strongest monthly rise in UK manufacturing production since July 2002 and the strongest monthly rise in UK industrial production since February 1987. (UK Office of National Statistics, August 2012)
The Fund remains open for additional investor commitments until February 2013. -Ends-About BLME Bank of London and The Middle East plc ("BLME") is an independent UK wholesale Sharia'a compliant bank based in London. BLME received FSA authorisation in July 2007 and is the largest of its peers in Europe. It is led by a management team that brings together a combination of experienced international bankers and leading experts in Islamic finance.
The four core areas that set the foundations for BLME's competitive offering are Private Banking, Asset Management, Corporate Banking and Markets Division.
BLME is dedicated to offering innovative Islamic investment and financing products to businesses and high net-worth individuals in the European, US, Asian and MENA regions. To ensure that BLME's services and operations are wholly Sharia'a compliant, the Bank has a dedicated Sharia'a Supervisory Board ("SSB"). The SSB's role is to review contracts and agreements relating to all transactions ensuring that they are consistent with the principles of Islamic jurisprudence.
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