Shari’ah Compliant Investment

We have been at the forefront of developing Islamic investment techniques for years. Our Real Estate Group, collaborating with other groups across the firm, has vast experience with all of the principal forms of Islamic contracts. We work with clients in acquiring and financing real estate and private equity investments, compliant fund formation, and project development and finance. We work closely with leading scholars in the field to advise compliant investors, to develop innovative approaches and to sensitize the wider community to the relevant investment principles and transaction structures.

The following list highlights some of Shearman & Sterling's Shari’ah compliant investment experience:

  • Al Rajhi Bank and Banque Saudi Fransi in connection with the tawarruq financing of the acquisition of a port in Saudi Arabia
  • Barclays Bank, Citibank, KfW Group and other lead arrangers with respect to the US$1.6 billion financing of the 1500 MW and 100 MIGD Shuwihat S1 Power Generation and Sea Water Desalination Plant in Abu Dhabi, which included murabaha and istisna’a/ijara tranches
  • Credit Suisse First Boston in the formation of Islamic Real Estate Fund, a $600 million fund organized by Credit Suisse First Boston to make Shari’ah compliant investments in U.S. and European real estate
  • Landmark Real Estate Advisors, LLC in the formation of Banyan Real Estate Fund, a Mauritius real estate private equity fund formed to invest in Shari’ah compliant real estate in high growth markets in India. The Fund’s primary investment focus is on development of residential apartment projects on a joint venture basis with local developers
  • Permal Group in the formation of Mudarabah Investment Holdings N.V., an investment fund that adheres to Islamic investment principles and in connection with Alfanar Investment Holdings N.V., an investment fund that adheres to Islamic investment principles with in excess of $400 million in gross assets
  • Strategic Real Estate Advisors Ltd. in acquisition, financing and disposition of substantial properties in the United States, including: the acquisition and financing of the USAA industrial portfolio, the Chicago multi-family property known as Grand Plaza, the Brookdale office portfolio, Four Penn Center in Philadelphia, Pennsylvania, and the Riverside on the James mixed-use development in Richmond, Virginia; joint venture with K Hovnanian to develop condominium project at 77 Hudson Street, Jersey City, New Jersey; acquisition, financing and disposition of 1201 New York Avenue, Washington, D.C.; acquisition, financing and disposition of the Quaker headquarters building in Chicago, Illinois and the AON headquarters building in suburban Chicago
  • Wafra Partners, LLC in the formation of several real estate investment funds, denominated in U.S. Dollars, investing primarily in a diversified portfolio of investments in real estate and real estate-related assets
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