Tadhamon Capital and Apache Capital Partners complete the acquisition of Paris Gardens in Central London
Tadhamon Capital B.S.C. (c) & Apache Capital Partners, the Bahrain & London based Islamic real estate investment company's announced the successful completion of the acquisition of a prime Central London student accommodation development, in a Joint Venture with McLaren Property. The development, known as Paris Gardens, is due for completion in September 2013.
The transaction is valued at GBP 45mn and forms part of the Tadhamon Capital & Apache Capital Partners' (TC-AC) managed Social Infrastructure investment platform with current gross AUM of $140m. It was concluded at a net initial yield (NIY) of 6.4% and will distribute an average quarterly net cash yield of 7.3% p.a. to investors (6% p.a. during the first year of construction and 8% p.a. thereafter) with the income being guaranteed by the developers, McLaren Property.
Paris Gardens lies within the London Borough of Southwark, on the south bank of the River Thames and is within minutes of walking distance from some of London's major universities including King's College London, London South Bank University, City University, University of Westminster and London Business School. The property will consist of a 9-storey and 13-story development to provide student accommodation of 253 beds, a common room and communal courtyard, and an art school of 33,230 sq ft across 3 floors. It will be managed by Victoria Hall, a specialist student accommodation company with a presence in 14 major cities in the UK and Europe.
Mr. Waleed Abdulla Rashdan, Chief Executive Officer of Tadhamon Capital stated: "Paris Gardens represents our third transaction into the UK under our Social Infrastructure platform which was initiated with our first acquisition in Q4 of 2010 of a special needs school, and subsequently our acquisition of a student development property in 2011.
The strong performance of these acquired assets has reinforced our belief in the sector and its resilience in the face of economic turmoil. Through our presence and transactions in the UK market we have sought to developing on-going close relationships with some of the industry's most established names to continue fulfilling our investors' interest in this sector.
Over the coming 12 months, we are committed to complete a number of relatively advanced transactions in our pipeline that will target to deliver secured distributions of 6% to 8% p.a. to our investors. These include a joint venture providing social housing within some major UK cities and additional student accommodation properties in top-rated university cities."