Shojin has structured and funded its first Shariah-compliant real estate investment for a residential development in Greater Manchester.
The firm’s investment into the 250-unit residential development, in Salford, was split between its traditional bond investment structure (£2m funded) and a Shariah-compliant commodity murabaha structure (£2.2m), which adheres to islamic financial principles.
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It comes amid growing demand for Shariah-compliant real estate investing, with real estate being one of the most popular categories for Shariah-compliant investments globally, according to Investopedia.
Notable examples of this include The Shard and Chelsea Barracks, which were both acquired by Qatar’s sovereign wealth fund using Shariah-compliant structures.
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The firm said it is now exploring collaboration opportunities with other platforms to make UK real estate projects accessible to clients worldwide who are seeking Shariah-compliant investment opportunities.
The Islamic finance market is expected to reach $6.67tn (£5tn) globally by 2030.
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“This milestone marks a pivotal expansion in Shojin’s offering, enabling us to cater to the growing global demand for Shariah-compliant real estate investments,” said Igor Gorbatsevich, head of growth at the firm.
“By combining institutional-grade structuring in a Shariah-compliant manner, we are opening up UK real estate private credit as an investment opportunity to a wider and more diverse investor base.”
