Sharia compliant UK Property Investment

Our Middle East Desk was established to support clients from the Middle East with UK property investments as well as other family and business matters.

 

The team combines an understanding of the principles and requirements of Sharia-compliant real estate finance and has strong relationships with banks providing Islamic Finance. We pride ourselves on our an ability to deliver clear advice to our international clients, who are often not well versed in the nuances of UK property law.

 

We act as trusted adviser and project manager for clients, working collaboratively with their other advisers across a number of jurisdictions to ensure the best outcome for our client.

The Sharia-compliant structures we have advised on include:

  • Ijarah
  • Musharakah
  • Murabaha

Our leading reputation in real estate and real estate financing (both conventional and Sharia-compliant) has secured a loyal and active client base of Islamic banks, international entrepreneurs and real estate investors from the Middle East and South East Asia, including Malaysia.

In the past, the availability of Islamic finance was quite restricted in the UK, but now almost every bank and alternative finance provider can provide facilities or conduct transactions in full compliance with Sharia.

The theological basis for Islamic finance stems partly from the traditional prohibition of interest, which means that interest-based lending may not appeal to followers of Islam.

Increasing numbers of corporate bodies (Muslim or otherwise) agree with the underlying principles of Islamic finance including the equitable distribution of profit and risk and the ideals of fair trading and the operation of ethical banking practices. Islamic finance products have been structured to avoid the payment of interest. These financial products have been developed so that they fall within the regulatory and legal framework of England and Wales.

Acted for a Middle Eastern family client wishing to expand their already substantial UK property portfolio and requiring a £21m Islamic Murabaha Financing arrangement for the purchase of 8 residential units by way of an overarching assignment of 8 existing contracts to a newly formed Company. Arranging the associated structuring advice and tax advice and for all associated client meetings, transaction documents and advice notes to be provided to the client in Arabic and English.

 

Advised a Middle Eastern client on a £70m refinancing of a commercial property in central London. The funder was offshore but acting through its London branch and the client’s trust administrator was based in Jersey, requiring us to co-ordinate matters with multiple parties across three jurisdictions.

Key Contact
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Freddie Hunter

Associate

+44 (0)20 7591 3375

Key Contact
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Tanveer Rashid

Associate

+44 (0)1892 489 595

Key Contact
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Alyson Thornton-Clark

Partner

+44 (0)20 7591 3367

Key Contact
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Dominic Filleul

Partner

+44 (0)1892 506 129