UK: Newly launched Solum Asset Management is planning to issue a Sukuk in the first quarter of 2012 that will invest in student accommodation in the UK.
The Sukuk will have a maturity period of between five to seven years with net initial yields on acquisition likely to be between 5.75 % (London Prime) and 7.25% (regional).
The Sukuk will target assets where the average rental growth is expected to be at least 2.5% per annum.
Pursuant to the Sukuk, the company will also seek to establish a Shariah compliant UK Social Housing Fund in the fourth quarter of 2012.