International asset manager Threadneedle has taken a 2% stake in Islamic property bank Gatehouse.
London-headquartered Gatehouse is a Shariah-compliant investment bank that specialises in real estate, treasury, wealth management and Shariah advisory. It manages $2bn of assets in the USA, United Kingdom and Europe.
The deal highlights the growth potential that Threadneedle, which manages $148bn world-wide, sees in Gatehouse’s expertise and the markets it serves; Islamic financing is one of the fastest-growing component of the international financial system.
Ted Truscott, Chairman of Threadneedle said “Gatehouse’s combination of Shariah-compliant investment expertise, its track record and the breadth of its relationships across the GCC region and Southeast Asia are unrivalled. We are excited to make this investment into Gatehouse and look forward to exploring areas of mutual interest.”
Gatehouse’s real estate finance team is headed by Natale Giostra; David Swann is head of real estate investments. Recent deals include a private rented sector joint venture with Sigma Capital, with an intial £100m scheme to build 927 units; providing £22.5m senior financing to Al Dau Development for the Holiday Inn London West, and co-sponsoring a new £100m European mezzanine finance fund, alongside a US-based investment manager which will make Shariah-compliant investments.
Henry Thompson, Chief Executive Officer of Gatehouse stated “We see an increasingly attractive market in which to grow the range and volume of high-quality Islamically structured investment products. With the expertise that we have developed, we believe there is a considerable opportunity to develop this business for Gatehouse and its clients.”
Real Estate Capital will carry a special report on Islamic finance in the April issue.