Amaanah Investment Group, a London-based UAE investment and asset management firm, has set up a US$120m sharia-compliant fund aimed at Gulf investors looking to invest in "prime property" in the British capital.
With the new sharia-compliant fund, Amaanah, which was set up in Abu Dhabi by Emirati businessman Haashim Al-Rifai and is now permanently based in London, is aiming to close its first purchase in the coming months, reported Construction Week Online.
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Backed by a number of prominent silent Abu Dhabi investors, the size of the fund currently stands at GBP30 million (US$45 million), while Al-Rifai aims to cap this at GBP80 million by the end of 2013.
The fund is looking to target properties between 1800 sq ft and 3000 sq ft and located in the Mayfair, Belgravia, Chelsea and St John’s Wood areas, which currently sell for around GBP3-5 million.
Al-Rifai said: "Prime property in the capital continues to offer solid growth potential, and London has cemented its status as a safe haven due to its stable political system and transparent legal structure.
"New York and London are off limits to individual investors but we aim to open that market to average investors who found it hard to invest in London.
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By GlobalData"Prices of prime residential homes in London have increased 27% since 2007, and we expect prices in the capital to continuing growing by 13% over the next two years.
"We also expect rents to increase by about eight percent this year, which provides a solid return for potential investors."
