Saudi-UK venture courts investors

Sidra Capital, a Shariah-compliant financial services company based in Saudi Arabia, together with Gatehouse Bank, a Shariah-compliant wholesale London-based investment bank, plans to collect SR 500 million from investors in the Kingdom, promising attractive returns.
Sidra talked about their plans in Jeddah on Tuesday and held a press conference in Riyadh the same day.
“We hope to collect half a billion riyals from investors before the end of November for the company’s capital expansion,” said Hani Othman Baothman, managing director and CEO of Sidra.
He highlighted the benefits of investment in real estate in the UK, compared to the conventional modes of investment and traditional income from financial houses. He stressed that the company could offer more than seven percent dividends for investment made with the company.
“Saudi-United Kingdom Real Estate Fund (SURF) is open to both UK and international investors and draws on the key strength of the two partners — Gatehouse’s Shariah compliant expertise in the UK’s real estate sector and Sidra’s comprehensive knowledge of alternative investment fund activities in the Middle East.”
Baothman pointed out that the joint venture aims to acquire a diverse real estate portfolio in the UK, offering investors access to one of the world’s most transparent and well-regulated markets.
Adam Cavanagh, head of Real Estate at Gatehouse Bank, said the UK real estate market is considered mature, transparent, well regulated and liquid in comparison with many of its worldwide counterparts. "The lease structure in the UK is favorable compared to the international markets both in terms of lease and tenant obligations.”