UK: A Luxembourg-based Shariah compliant real estate fund advised by Pramerica Real Estate Investors has acquired a shopping and entertainment center in Hungary for EUR16.3 million (US$23 million). This is the first Shariah compliant refinancing to be undertaken in Hungary.
King & Spalding, which represented Pramerica, was responsible for structuring the refinancing based on an Ijarah wa iqtina with a complex split structure.
This was due to the fact that the anchor tenant had already entered into a long-term lease with the previous owners. Hypo Investmentbank provided the funding for the refinancing.