KUWAIT, Sept 19 (KUNA) -- London-based Gatehouse Bank, a Kuwaiti-owned wholesale Shariah compliant investment bank , has completed the acquisition of a newly built student accommodation property in Glasgow, Scotland.
The Gatehouse Bank is owned by Kuwait Securities House.
The purchase delivers a cash yield of 8.0 percent per annum, Gatehouse Board Chairman Fahad Boodai said in a press statement.
This most recent transaction follows the acquisition of two earlier student accommodation properties in Loughborough and Liverpool, both of which were also developed by Watkin Jones, as well as a third student accommodation property in Oxford, bringing the total value of Gatehouse Bank's real estate portfolio to USD 500 million, he said.
"This is an excellent acquisition that recognises the importance investors are placing in student accommodation as an investment opportunity that delivers outstanding returns. I am pleased to report that the latest Watkin Jones acquisition has proven Gatehouse Bank's position as a market leader in the development of commercial real estate solutions for a savvy GCC investor audience," he added.
For his part, Head of Real Estate at Gatehouse Bank Adam Cavanagh said: "Purpose built student accommodation is already a well-established real estate sector in the UK worth approximately 6.5 billion pounds, and is one of few asset classes experiencing rental growth.
An inherent supply and demand imbalance in Scotland has consistently delivered close to 100 percent occupancy rates and, with student numbers forecast to grow at 10 times the rate of new completions, we can expect to see sustaining rental growth as well as increasing capital values in the sector," he added.- Kuna