Manama: Tadhamon Capital, the Bahrain-based investment arm of Tadhamon International Islamic Bank, announced the successful exit from its investment in Coxlease School in Lyndhurst, Hampshire, UK.
The school is a specialist residential education facility for children aged nine to 19 with severe behavioural, emotional and social difficulties.
It is let to Priory Group, a leading provider of behavioural care in the UK, for a 30-year period with annual rent reviews linked to the retail price index.
Acquired in November 2010, the school was Tadhamon’s seed investment in its Social Infrastructure Investment Platform in the UK. The platform currently holds assets valued at more than $523 million across segments including student housing, education facilities, elderly care and retirement homes and social housing.
Over the five-year investment period, a minimum annual cash dividend of nine per cent was distributed quarterly to investors.
The investment achieved a total return on capital exceeding 60pc, translating to an internal rate of return (IRR) of more than 12pc.
“Tadhamon Capital strongly believes in the UK’s real estate market, where over the last several years we have established a strong track record of investing,” Tadhamon Capital executive director of investments Hesham Al Gassab said.
“We have successfully built up our Social Infrastructure Investment Platform sourcing investment opportunities capable of achieving attractive annual returns for investors ranging from 6pc to 9pc per annum and IRRs reaching 25pc.”
However, he said, over the last two years in particular, UK real estate values have risen considerably as a result of the surge in international institutional capital flowing to the market.
“This has made it increasingly challenging to achieve targeted returns.
“We believe next year is going to be even more difficult forcing us to shift our focus in the UK to more opportunistic transactions.
“We are currently looking to the residential market, targeting development opportunities either in the pre or post planning phases within Central and Greater London locations where we still see potential for capital appreciation.”
According to Tadhamon Capital chief executive Ahmed Sultan, despite the impact of geopolitical events and low oil prices in regional and global markets, the firm was well placed to identify and offer compelling opportunities to GCC investors looking for portfolio diversification, steady and attractive returns and wealth preservation.
&uuid=(email))