Sharia-compliant Central and Eastern European Real Estate fund launched

Bahrain investors have decided to pile into the CEE region on Europe, calling it a “fast growing sector”.

Swiss-based Faisal Private Bank, Bahrain-based Shamil Bank and Sharjah Islamic Bank have launched a €150 million ($231 million) Sharia-compliant Central and Eastern European Real Estate vehicle.

According to the partners, it will be investing in development opportunities as well as income-generating assets in the region.

Faisal Private Bank is the investment advisor of the fund, Sharjah Islamic Bank the lead sponsor, and Shamil Bank the sub-advisor and co-sponsor.

Giovanni Perin, head of investment banking at Faisal Private Bank, said: “We are very pleased with the response of the Bahrain market to this fund, which is aimed at an informed and sophisticated investor-base with very particular demands and interests.

Saeed M. Al Amiri, head of the investment group at Sharjah Islamic Bank, added: “Following its own due diligence study, Sharjah Islamic Bank opted to invest in this fund, which presents investors with a very interesting long-term opportunity to enter a fast-growing sector, in a part of the world that is experiencing rapid economic growth. We are confident it will attract further interest from institutional investors across the region.”