London based Shariah-compliant asset management firm, Ethical Asset Management, has today launched the world's first ever 'Investment Sukuk
' fund, which is set to raise £200 million for assets in the UK Student Accommodation sector.
Ethical AM's multi million pound Investment Sukuk, which is domiciled in Jersey, will acquire existing income producing properties located in the top University towns and cities throughout the country, using pure equity at all times. No debt or leverage will be utilised before, during or after the acquisitions. Ever.
Ethical AM's founder and CEO, Saadat Khan, refers to this fund as the world's "first true Sukuk". Khan says:
"Unlike other so-called Sukuk in the Islamic Finance industry, which are identical in all but name to other products such as those in the conventional bond market, Ethical AM will purchase real assets outright and provide investors with full ownership, which includes exposure to the risk / reward that is integral in a Shariah transaction. This is in line with how a Sukuk should truly be a genuine investment not a debt."
The launch of the Investment Sukuk is also the first ever equity only fund for UK Student Accommodation.
Despite the downturn in the wider British economy, commercial and residential property sectors, the UK
Student property sector has outperformed every other commercial property class. Khan stated that the shortage of purpose built housing for students in many cities, coupled with the low delivery of new private housing stock, has resulted in continued positive rental growth in many cities. The continued strong fundamentals of the sector and the identified pipeline of projects which Ethical AM will initially acquire has led the firm to project annual net returns of 4-6%.
After witnessing the economic turmoil caused by the conventional financial system, the firm believes that the world economy could greatly benefit from a Shariah styled, debt free framework, such as this:
"We want to provide a commercially viable option that is a true win-win for all concerned, which does not rely on debt and can still deliver secure and stable returns."
The steps taken by Ethical AM coincide with the interests of the British Government, who in recent years have been promoting the UK as a hub for Islamic Finance and have taken significant steps towards making this a reality. The launch of the world's first 'Investment Sukuk' from a UK company should significantly assist to raise the profile and interest in the UK as an inward investment consideration from Shariah minded investors looking for opportunities in other key sectors, such as Social Housing and Healthcare.
-Ends- Ethical Asset Management (Ethical AM) is a UK based Shariah-compliant company who acquires and manages assets that are deemed ethical and adhere to Shariah's principles. For more information, please visit www.ethical.am
Contact information: If you'd like more information about this topic, or to schedule an interview with Saadat Khan, please call Ethical AM on +44 (0) 207 664 8680 or e-mail us at firstname.lastname@example.org
© Press Release 2012¬