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Qatari Diar Real Estate Investment CompanyQatari Diar Real Estate Investment Company and their joint venture partners CPC Group (which together own Project Blue (Guernsey) Ltd) today announced a US$2.5 billion syndicated financing to fund Project Blue (Guernsey) Ltd's purchase of London's Chelsea Barracks, a 5.2 hectares (12.8 acres) area in the City of Westminster that is generally regarded as one of the most important development sites in Europe. In this ground breaking deal, Project Blue (Guernsey) Ltd has negotiated what is believed to be the largest Islamic financing on a UK property.
Project Blue (Guernsey) Ltd, which is majority owned by Qatari DiarQatari DiarLoading..., with additional investment from CPC Group, is financing the Chelsea Barracks acquisition through an aggregate USD 2,467,875,000 sale and lease (ljara) financing structure. The financing is fully underwritten by PBGL's strategic partner Masraf Al RayanMasraf Al RayanLoading..., BNP ParibasBNP ParibasLoading..., CALYON Crédit Agricole, HSBC AmanahHSBC AmanahLoading..., and Qatar National BankQatar National BankLoading....
Though similar in most aspects to conventional banking practices, Islamic financing laws prohibit the collection and payment of interest and investing in businesses that are considered to be unlawful in the Islamic faith.
, Mr Ghanim bin Saad al-Saad said: "We were delighted to be the majority investor in the consortium which has purchased Chelsea Barracks, and the related launch of our inaugural syndicated financing represents a major step in the advancement of what is certain to be an important development for all of London.
Qatari DiarQatari DiarLoading... has a reputation for creating some of the most desirable commercial and residential development projects in the world, and this project represents our first major investment in Europe. Chelsea Barracks will adhere to our commitment to creating sustainable developments that build communities and enhance the well-being of all."
Christian Candy, founder of CPC Group comments: "This is the most important redevelopment scheme in London in the last fifty years and therefore it is fitting that together we have secured this historic financing".
Project Blue (Guernsey) Ltd completed the purchase of Chelsea Barracks on 31 January 2008 for a price of £959 million, with the payment split evenly over five years.
Patrick Chenel, Chief Financial Officer for Qatari DiarQatari DiarLoading... commented, "The financial structure developed here has allowed us to deliver a truly innovative financing solution for the global real estate sector. We have broken new ground with our advisors, by creating and setting up Islamic financing of a scale not seen before in a major real estate acquisition in UK." |
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