Gulf Islamic Investments has closed the largest real estate transaction to date and paid $ 301 million for Altais Towers in Paris.
The company bought the towers from a consortium of funds managed by Oaktree Capital Management. According to Bloomberg, the company based in the United Arab Emirates is pushing into Europe.
GII said it trades in the UK and Germany. The company aims to expand its managed assets from approximately $ 2.5 billion to approximately $ 3 billion by the end of the year. The company plans to launch its second India-focused fund in the second quarter.
Founded in 2004, GII focuses on alternative investments, including real estate and venture capital. It is considered a Sharia compliant fund, which means that it complies with the legal requirements of Sharia in its operations and investments.
Sharia-compliant funds each work differently, but generally avoid businesses considered haram, such as the production of spirits and gambling.
Income is also heavily regulated. According to PricewaterhouseCoopers, for example, short sales are problematic in most cases. Interest is generally considered to be prohibited under Sharia law, so some eligible funds donate this income to charity.
[Bloomberg] – Dennis Lynch