The London Fund has been created to offer a unique real estate investment opportunity that is financed solely by legitimate Shari`ah principles. The fund has evolved from the personal vision of Adnan Siddiqi, Amstone's managing director.

The London Fund will focus on stable, income producing assets that are in prime central London locations which can be acquired on attractive terms as a result of the current and expected further distress in the marketplace.

These assets will provide annual cash returns derived from passing rental income – capital growth will be sought primarily from a medium term recovery in capital values and intensive asset management.

The London Fund has been set up by Amstone Ventures LLP, which is a joint venture between Amstone and Real Estate Venture Capital Management LLP (Revcap), bringing together a highly competent and experienced team of property experts who are already successfully working together on a German fund – German Commercial Investments.

The team prides itself not only on identifying the most lucrative opportunities, but also on being able to add value through asset management.

The Vision

For many years Adnan Siddiqi has aspired to establish a property fund financed by legitimate Shari`ah principles. The London Fund is designed to realise this ambition.

The aims of the fund:

• To build a real estate fund focusing on prime central London investment properties.
• To finance the acquisitions and investment with true Shari`ah compliant structures; based wholly on
• Shari`ah principles as opposed to modified conventional banking models
• To build Phase 1 of the fund up to £100m in size - seeking investment from a small number of financial institutions/investors.
• To expand the fund to £500m in Phase 2 to allow a wider spread of financial institutions and private investors, thus enabling investors to participate in prime London assets via a Shari`ah compliant structure.
• To capitalise on the depressed market conditions.
• To provide quarterly, cash on cash distributions derived from rental income.
• To aim for substantial capital growth via yield compression and intensive asset management.
• To only invest in good quality, income producing assets in central locations with a proven history of tenant demand.

The Team

Amstone Ventures LLP is a joint venture between Amstone and Revcap that specifically focuses on opportunities generated in the current real estate market turmoil.

Amstone has successfully developed and invested in real estate for over 15 years, and has a track record of delivering added value to UK and German real estate development and investment opportunities.

Revcap is a real estate co-investment organisation with a substantial portfolio of real estate and real estate related investments across Europe.

Amstone and Revcap have already successfully worked together for a number of years with their German Commercial Investments Fund, which has built a €100m real estate portfolio.

With combined experience spanning close to 100 years and a large contact base, this dynamic team is uniquely well placed to source the best investment opportunities.

Adnan Siddiqi Adnan has 20 years’ experience in real estate and has achieved exceptional success in that time. He is known for his astute ability to identify opportunities and develop these into highly profitable investments. Initially, Adnan focused on speculative property development before turning his attention to income producing investments. He has built a substantial portfolio of investments, ranging from speculative land to commercial retail assets in the UK and Germany. He has always strived to seek Shari`ah compliant finance and follow an ethical pattern of investment.

Martin Halsey Martin has a vast array of experience spanning the planning, legal, financial and real estate appraisal sectors. He has worked in the property industry for 16 years; initially overseeing residential refurbishments before joining Adnan in 2000 and helping to maintain Amstone Developments as a leading real estate investment company. Martin is an essential team member, using his invaluable expertise in asset management and enhancement.

Shari`ah Compliance

The London Fund will adopt the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB) standards and will implement monitoring procedures so as to ensure that Shari`ah compliance is not compromised. A variety of screens will be applied so as to meet not only the negative constraints imposed by Shari`ah, but also in order to further its objectives wherever possible. As an example of the former, tenancy agreements will not be entered into with clients whose commercial activities contravene Shari`ah requirements; the fund will not enter into prohibited ancillary contracts and interest income on surplus cash balances willbe donated to charity.

While we intend to put Shari`ah compliance at the forefront, we do not believe that this will prejudice the commercial performance of our portfolio. By acquiring assets under Islamic installment purchase and leasing agreements, the fund intends to achieve a degree of leverage that enhances total returns. However, the fund will not use Islamic cash financing of any variety. When entering into leveraged transactions, particular attention will be paid to default conditions so as to protect the interests of investors irrespectiveof fund performance.

To assist overseas investors, the fund will be constituted as a limited company offshore and provisions on Shari`ah compliance will be embodied within the Memorandum and Articles of Association.

Amstone Ventures LLP has appointed Zest Advisory LLP in London to provide Shari`ah advisoryservices in the design of the fund, to project manage the various external advisoryservices during the establishment phase, and to act as Shari`ah auditor on an on going basis post-launch.

Tarek El Diwany is the senior partner at Zest Advisory LLP. Tarek has spent twenty years working in both secular and Islamic finance, including three years as Head of Islamic Finance at a major London-based financial institution. Here, he advised on the structuring of Islamic financing for clients in the Middle East, Europe and South-East Asia. He regularly speaks on the subject of Islamic banking and finance in the media and at international conferences. Since 2004 Tarek has worked as senior partner at Zest Advisory LLP in London. His work has included the structuring of Islamic investment funds and project financing mechanisms, the provision of policy research in Islamic banking, Islamic investment research and Shari`ah advisory services.