Savills advises on acquisitions for the first Sharia-compliant fund in Germany

Our German office provided comprehensive advice and acquisition expertise to enable Arabinvestments Ltd, a Sharia-compliant fund, to purchase 13 high quality properties for a total of €433 million.

The relationship with Arabinvestments was founded on expert advice relating to an effective strategy for the German market. The fund targeted a yield profile of 6.2% and we focused on a bias towards retail properties, within a broad-based portfolio.

Among the flagship properties acquired, the Berlin shopping centre ‘Lio’ is perhaps the best known. Offering 12,255 sq m with 300 parking spaces, this is a successful, multi-level development located at a main railway station. Headline tenants include C&A, Kaisers, Aldi and Elexia. The final portfolio comprises 58% retail, 18% office, 21% other commercial and 3% residential. The average lease is 11 years.

All properties will be completed in 2006 – 2008 and have been acquired off-market from well-known German developers such as Züblin, Bauwert and OFB.

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