Fladgate’s Funds, Finance and Regulatory (FFR) Group has recently advised a Bahraini bank on the £15m acquisition of a development site on the outskirts of London within a Shari’ah funded joint venture structure. The team comprised Ella Leonard (funds partner), Philip Turner (real estate partner), Luke Morris (banking partner), Richard Kaufman (real estate partner), assisted by Siobhan Doherty and Wing-Yan Tang.
Over recent months, our FFR Group has noticed a distinct increase in interest and instructions in the area of Islamic banking or what is more properly called Shari’ah compliant finance. Fladgate has, over several years, developed expertise in assisting clients with transactions involving Islamic finance elements. All these transactions have involved either residential or commercial property as the ultimate asset and the structures we have been involved in have therefore mainly followed either Ijara lease or Murabaha requirements. This has enabled our clients to receive income and profits from transactions in an Islamic compliant way and for us to reach agreement with debt providers on the form of their returns. The structures have been approved by Islamic scholars.
Banking partner, Charles Proctor has been published on the subject in his weighty tome, The Law and Practice of International Banking (watch him in this clip on YouTube talking about problems that arise in Shari’ah finance), and both he and Ella Leonard have experience of putting together structures for individual clients, family offices, banks and other financial institutions.