The property investment arm of Qatar's sovereign wealth fund has secured $2.5 bn (EUR 1.64 bn) in funding for the joint venture purchase of the Chelsea Barracks in London. Qatari Diar Real Estate Investment in what it describes as one of the 'UK's largest Islamic finance deals'.
The property investment arm of Qatar's sovereign wealth fund has secured $2.5 bn (EUR 1.64 bn) in funding for the joint venture purchase of the Chelsea Barracks in London. Qatari Diar Real Estate Investment in what it describes as one of the 'UK's largest Islamic finance deals'.
Project Blue, a joint venture of Qatari Diar Real Estate Investment and CPC Group, completed the purchase the 5-hectare property in London's Westminster district from Britain's Ministry of Defence for £959 mln (EUR 1.25 bn) in January. The loan was underwritten by Qatari Islamic lender Masraf Al Rayan, BNP Paribas, Calyon Credit Agricole, HSBC Amanah, and Qatar National Bank.
'We were delighted to be the majority investor in the consortium which has purchased Chelsea Barracks, and the related launch of our inaugural syndicated financing represents a major step in the advancement of what is certain to be an important development for all of London', said newly-appointed CEO of Qatari Diar, Ghanim bin Saad al-Saad.
The company said it plans to transform the property into 1.45 mln sq. ft of luxury apartments, a luxury hotel and an underground car park. Architect practice Rogers Stirk Harbour + Partners in conjunction with London's leading interior design house and development manager, Candy & Candy, will lead the new development project of the site.
Patrick Chenel, chief financial officer for Qatari Diar, said: 'The financial structure developed here has allowed us to deliver a truly innovative financing solution for the global real estate sector. We have broken new ground with our advisors, by creating and setting up Islamic financing of a scale not seen before in a major real estate acquisition in UK.'
