Ibdar Bank acquires prime site in UK
Manama : Bahrain-based wholesale Islamic investment bank, Ibdar Bank, has announced the closing of a US$29.5 million Joint Venture to develop a prime Purpose Built Student Accommodation (PBSA) project in UK’s Southampton.
Commenting on the acquisition, Ibdar Bank Acting CEO Ahmed Al Rayes said, “The bank has successfully acquired a prime site in Southampton in order to develop a leading Purpose Built Student Accommodation (PBSA). It will meet the rising demand for higher quality student accommodation in the area by both local and international students. The acquisition is in line with our strategy to identify and invest in prime global real estate within the UK market, which is an area of strong and ongoing interest for the bank. This latest transaction in student housing in the UK offers investors exposure to an alternative and resilient asset class.”
The project site is located at Cumberland Place, one of the main commercial streets in Southampton’s city centre, and is close to the main universities of Southampton. The Class A development will provide accommodation for more than 200 students in a mixture of one-, two- and three-bedroom modern studio apartments. The project is expected to be completed in time for the 2018-2019 academic year.
The bank is capitalising on the experience of leading UK-based developers who have strong track records within the student accommodation sector, having delivered premium student accommodations throughout the UK.
Director of Real Estate Bassam Kameshki said, “The UK remains an investment destination of choice for GCC investors, and this deal in a defensive sector is expected to generate attractive returns.”
“We have chosen Southampton as there is an undersupply of quality, PBSA schemes and a shortage of accommodation for college students taking into consideration the growing student population and the ongoing expansion of universities in the Southampton area,” he added.
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