Tadhamon Capital arranges the acquisition of mixed-use student development valued at more than £100 million.
Tadhamon Capital BSC (c), a Bahrain based Islamic Investment Company, has announced the successful completion of the acqui- sition of Paul Street development – their second prime Central London development to-date. The acquisition was concluded in joint venture with Apache Capital and McLaren Property follow- ing the successful development and full letting of its first prime Central London student development – Paris Gardens – which was also carried out with McLaren Properties.
The Paul Street development will be comprised of three blocks, two of which will contain 456 student accommodation units with a 1,550 sqft ground floor retail space, with the third block consist- ing of a stand-alone office building. Construction work is expected to commence in during the first quarter of 2014 with completion targeted by the end of Q3 2015. The investment is expected to generate a minimum average annual net cash yield of 7.3% and an Internal Rate of Return of 17.5%
Paul Street is located on the northern fringe of the City, within proximity of the fashionable areas of Hoxton and old Street. The property benefits from its close proximity to the major public trans- port nodes of Liverpool Street Station and old Street tube station and from being within walking distance of two ofLondon’s largest universities: London Metropolitan University and City University. Mr. Waleed Abdulla Rashdan, Chief Executive officer of Tad- hamon Capital, stated, “over the past 4 years we have taken a strategic decision to expand our investments within the Uk and have since focused on building our social infrastructure platform. To date, we have successfully closed 10 transactions at a total value of £240mn, and spanning the three diverse sectors of student accom- modation, senior housing & care homes, and specialist education, within strategic locales around the Uk, with four of our student accommodation properties ( exceeding 1,500 rooms) currently being in and around London. We will continue exploring further opportunities within these sectors as part of our platform as they have proven their resilience to market changes, and continued their marked growth. As part of our continued efforts to capitalize on the market & growth trends within the Uk, we are currently exploring a number of prospects within the residential and office sectors as we believe these are currently recovering from the global economic downturn and would offer exceptional returns to our investors.”
He added, “over the past years we have established a solid real estate investment platform which will be used to replicate our success and experience within the Uk to invest over the next 18 months in selected cities within the EU, US and Turkey. our strat- egy has always focused on developing strategic partnerships within each market focusing on developing synergies to ensure the selec- tion of high quality to our shareholders and investors.”