Introduction of Real Estate Mezzanine Financing Product
European Finance House (EFH) is pleased to announce the introduction of a Real Estate Mezzanine financing product. The Mezzanine product utilises a Murabaha structure and complements the Bank's existing senior Musharaka based financing technique. The product has already been successfully used in the financing of a number of existing Real Estate investments.
The product will be focused upon the 60%-80% tranche within the capital stack and is particularly innovative in that it allows conventional and Islamic financers to co-exist within the same financing structure whilst fully meeting the requirements and guidelines issued by the Bank's Shari'a Scholars Committee. The Bank was assisted in developing the structure by London-based lawyers Trowers & Hamlins.
Michael Clark, Chief Executive Officer of EFH, commented:
"As the overall Real Estate debt markets remain capital constrained, debt-financed investors have been disadvantaged by the limited amount and restrictive terms of available senior financing. For transactions involving high quality, Shari'a compliant, Real Estate assets and experienced sponsors I believe the EFH Real Estate Mezzanine product will enable investors requiring bank financing to compete with cash buyers and generate enhanced returns."
Neill Gibson, Banking and Financing Partner at Trowers & Hamlins, added:
"The EFH Real Estate Mezzanine financing product demonstrates the flexibility of Islamic finance generally and shows that it can be used very successfully in structures using both conventional debt finance as well as Islamic finance. We are very pleased to have worked with EFH in developing this innovative product which will allow a larger number of Real Estate purchasers to access Islamic finance."
Contact Details
Andrew Fursman
Head of Real Estate, European Finance House
+44 (0) 207 268 7200
afursman@europeanfh.com