Al Murjan Holding increases allocation to Central London redevelopment project by completing second acquisition
Al Murjan Holding (AMH), a growing Jeddah-based conglomerate continues to implement its global real estate investment strategies by increasing its allocation to Central London high end residential redevelopment project by completing its second acquisition during Q1 of this year with a consortium of strategic investors including international investors.
The acquisition comprises two Grade II listed buildings located on Chancery Lane, a prominent midtown location and in close proximity to the junction of Fleet Street, the Royal Courts of Justice, The City, Covent Garden and the West End. The net purchase price of these buildings was £28 million.
The project envisages converting the buildings into 49 luxury apartments ranging from studio to 3-bedroom penthouses to cater to the increasing demand for such offerings by domestic and international buyers. Other value-add specifications such as security and concierge services will also be included in the project. Such scheme is believed to be strongly encouraged by the Westminster City Council in view of growing scarcity of residential properties within Central London.
A reputation as a safe investment, cemented during the financial crisis and recent periods of political instability all over the world, means there are today more reasons people buy a home in London. The number of transactions has jumped substantially. According to Knight Frank, a 37% increase in prime central London sales last year shows more people are spending more money as global economic threats recede. Transactions increased across all price bands including 33% jump between £1 million and £2 million and 88% rise between £4 million and £5 million. Essentially, the data suggests a promising outlook
Sidra Capital was retained as the transaction strategic adviser whilst DP9 and RER London were retained as the real-estate planner and developer respectively. The transaction manager is 90 North LLP, an independent investment advisory firm specialising in Shari’ah compliant real estate investments.
Mr Hani Baothman CEO of Sidra Capitalcommented, “In line with AMH’s strategic asset allocation, we acquired these buildings for redevelopment purposes. The timing was opportune as at the time the acquisition was duly completed, we already procured Westminster City Council’s planning approval for AMH’s first acquisition in Central London. Hence, on a portfolio basis, the risks remain manageable over various key development stages.
The Gross Development Value of this project stands at approximately £67 million and it is expected to be completed by early 2017.
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