Gatehouse Bank’s associate realises $71m real estate investment in San Francisco with a 100% return on equity

Gatehouse Bank’s associate realises $71m real estate investment in San Francisco with a 100% return on equity

Gatehouse Bank plc (Gatehouse), a leading wholesale Shariah compliant investment bank based in the City of London, has announced that its associate has successfully completed the sale of a real estate investment located on 181 Fremont Street, which is at the heart of San Francisco’s South Financial District in California. The total amount of the sale reached $71m (£46.4m), which yielded a profit on equity of 100% post costs and taxes.

This real estate investment consists of two office buildings situated on a 15,306 sq ft parcel of land and is adjacent to the proposed Transbay Redevelopment Project. The Transbay Redevelopment Project is an ambitious $3.4 billion (£2.2 billion) development which aims to modernise the Transbay Terminal and create a new neighborhood around the transit centre. Upon completion, The Transbay Transit Center, which forms part of the Redevelopment Project, will be the largest transportation hub ever built on the West Coast.

Mr. Fahed Boodai, Chairman of Gatehouse Bank said, “This investment successfully obtained entitlements from the City of San Francisco in December 2012 to allow for the construction of a 54-story, mixed-use residential and office tower. The strategic location of the buildings by The Transbay Redevelopment Project, along with obtaining the entitlements, contributed positively in enhancing the investors’ returns, as the entitlements allow for the development of as much as 684,000 sq ft of residential and office space at the site.”

Mr. Boodai concluded “The investment performed strongly, despite the adverse market impact of the financial crisis, and yielded profitable returns to our investors while also positively shaping the San Francisco Skyline”. Mr. Boodai added “the successful realisation of this investment comes in line with the strategic goals of Gatehouse in terms of providing unique investment opportunities that present excellent returns to investors within global markets”

Gatehouse Bank and its associate were assisted by Arch Street Capital Advisors, L.L.C. and SKS Investments in this transaction.