Saudi-UK fund distributes higher dividend
Riyadh, November 14, 2012
Sterling United Kingdom Real Estate Fund (Surf), a joint venture between Saudi-based Sidra Capital and UK-based Shariah compliant bank Gatehouse, has distributed higher than expected net dividend of 7 per cent (annualised) to its investors.
This is the second round of net dividends being distributed by the £100 million ($158.7 million) Saudi - UK fund to the shareholders, said a senior official.
"This round of distribution for Surf will further enhance Sidra’s credibility in undertaking investments in UK real-estate," remarked Hani Othman Baothman, the managing director and chief executive officer of Sidra and a board member of Surf.
The latest dividends distribution maintains the threshold set in the first round of distribution in June of 7 per cent net annualised, higher than the Fund’s targeted dividend of 6.5 per cent per annum, said the official.
According to him, the distribution was made from income generated by Surf’s previous acquisitions; namely the co-operative distribution unit, Huntingdon, Cambridge, TDG Distribution Centre in Glasgow and its latest acquisition of Adobe Systems EMEA headquarters in Maidenhead, which was completed in September this year.
Baothman pointed out that Surf was abound with investment opportunities, attributed by various external factors, including attractive exchange rates but "we prefer to remain cautious and conservative in our investment strategies keeping them aligned with the Fund’s objectives."
"Though yield is important, sustainable yield and preservation of capital is a priorities for Surf, he observed. To-date, the fund’s total portfolio size stands at £80 million, he added.
Ammar Zahran, the chairman of the Board of Directors of Al Murjan Holdings and a significant investor, expressed pleasure on the return distributed by Surf.
“Given the conservative investment strategy adopted by the fund, the distributed return is indeed commendable. I have complete confidence in SURF’s investment team and look forward to future returns as they look to acquire additional properties,” he added.-TradeArabia News Service