Islamic finance specialist Gatehouse Bank has provided £20 million of senior finance to Criterion Capital’s private rented sector residential subsidiary to back a south-east England scheme.
Gatehouse provided the Shariah-compliant facility to Miflats to finance its recently refurbished Enid Wood House, which comprises 97 apartments located in the town centre of Bracknell, Berkshire. The senior facility is understood to have a term in the region of three to four years.
Miflats was launched by Asif Aziz’s Criterion Capital in September 2014. The brand was established with the aim of building 10,000 homes across the UK by 2020. Three schemes containing 255 apartments are currently operated under the brand, with a further 1,379 units under construction and 1,145 units at the planning stage.
Unlike some of Gatehouse’s customers, Miflats is not limited to using Shariah-compliant finance. Graham Wood, Criterion Capital’s chief financial officer who advised Miflats on the deal, described Gatehouse as “competitive, commercial and responsive.”
Gatehouse’s lending division was set up in November 2013 and is targeting in the region of £200 million of new business this year.
“This helps to further show that our Shariah-compliant finance solutions are attractive to the mainstream UK commercial property community as well as our more traditional Gulf-based investor base,” said Trevor Homes, head of real estate finance at Gatehouse Bank.
Homes was recruited by Gatehouse Bank last October to lead the bank’s senior lending across the UK, France, Germany, Benelux, Spain and Italy. Homes joined from ICG-Longbow and replaced Natale Giostra who left last April to join residential developer CNM Estates where he is responsible for capital raising.