Sharia law governs sale of major Quayside property
A prominent building on Newcastle's Quayside has been sold in what is believed to be the first real estate transaction to comply with Sharia law involving two Islamic institutions based in the UK.
The building - 112 Quayside, and the principal offices of Newcastle law firm Ward Hadaway - has been acquired by a fund sponsored by European Islamic Investment Bank (EIIB) plc which is in the process of raising up to £340m for investment in European property.
Jeremy Beswick, head of asset management at EIIB, said: "The most critical aspect of a Sharia compliant transaction is that none of the buildings has been bought with borrowings where interest has been charged or received.
"The properties themselves must be Sharia compliant. For example, Islamic law does not allow the fund to buy retail space that predominantly sells tobacco, alcohol, pornography or pork products.
"It also cannot buy a casino because gambling is haraam, or unlawful, under Sharia law. The majority of offices, warehouses and most retail space is compliant."
The Newcastle building was one of four - including office, industrial and retail properties in Surrey, Hammersmith, Gloucestershire and Nottingham - sold by ABC International Bank plc to the fund for £58m last week.
It was sold to the bank - a subsidiary of Arab Banking Corporation - three years ago by US investment bank Credit Suisse for an undisclosed sum as part of a larger portfolio.
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1) Sharia law governs sale of major Quayside property
Wednesday, April 25, 2007
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