Bedford Row Capital launches first sukuk for UK property market
Bedford Row Capital (BRC) has issued a USD50 million, three year sukuk to finance the expansion of P1 Capital Ltd, (P1) a UK boutique asset-management group focusing on asset backed investments in the UK property sector.
All investments are secured on UK property by legal charges, debentures and corporate/personal warranties. P1 carries out rigorous due diligence on all projects to protect investments and actively monitors performance throughout the lifecycle of projects.
The sukuk is for a fixed three year period, maturing in September 2023 and offering investors a 7 per cent coupon paid quarterly - issued by Al Waseelah, a specialist UK-based sukuk issuer and managed by Bedford Row Capital with Shari'a advisory services provided by Khalij Islamic.
Recent advances allowing for efficient sukuk issuance provide investors access to Shariah-compliant European assets for the first time and allows mainstream corporates to diversify their funding base and access global capital markets. The target investors for the sukuk include high net worth individuals, corporates and institutional investors seeking both asset security and yield in a low or negative rate environment.
Commenting on the transaction, Christon Burrows CEO of P1, says: "We are delighted to be launching our sukuk with Bedford Row Capital and Al Waseelah. The current economic climate offers excellent investment opportunities for strong risk adjusted returns secured against UK property assets. P1’s strategy is to focus on a portfolio of well-researched and diversified investments in the South East of England where there is a fundamental demand for housing.”
Stuart Gordon, Chairman of Bedford Row Capital, says: "Being the first sukuk for investment in to the UK property market provides new choices for investors who have never before had the chance to invest in a compliant manner in prime UK property development. P1’s excellent track record provides a unique investment opportunity for Shariha-compliant investors in their search for yield."
All investments made by P1 Capital Ltd are undertaken with rigorous due diligence on all projects to protect investments and a specialist team to actively monitor performance throughout the lifecycle of projects.