Bahrain's Seera Investment bank inks deal for London student housing property; slated to open in 2013
Seera Investment Bank, a Shari'a compliant investment bank based in Bahrain, has announced the completion of a deal in the UK student housing sector.
The transaction comprises a financing facility for a new purpose built student housing project and commercial property in central London.
When completed next year, the property will offer 339 student rooms and 37,000 sq ft of commercial space, Seera said in a statement.
Construction of the property, which is located near Aldgate East station, is well underway with the first phase having just been completed, Seera added.
Khalid Al Nasser, Seera's chairman, said: "We are really excited about this opportunity. The strong position of the UK and London as a destination for higher education combined with the persistent shortage of purpose built student accommodation in the UK provide a very solid platform for the UK student housing sector from an investor point of view."
He added: "The demand supply gap in the sector supports a positive outlook for rental income and capital growth. The student housing sector is also of interest to Seera and its investors given the current economic climate, the recession proof nature of demand for UK student accommodation and the yielding nature of investments in the sector."
Abdulla Janahi, Seera's CEO, said: "Seera's strategy is to invest in deals with strong fundamentals and in industries which are not highly cyclical.
"We believe that given the low correlation of the student housing sector with economic cycles, the strong market fundamentals of the sector and the property's attractive features, this deals fits very well with this direction."
Seera said it has investments in the industrial manufacturing and transportation sectors in addition to smaller investments in the utilities and affordable housing sectors.