Shariah-compliant asset manager Gulf Islamic Investments (GII) has purchased a majority stake in UK real estate financing firm OFFA. Financial details of the transaction were not disclosed, but the capital will be used to develop short and long-term real estate financing products, according to a statement from OFFA.
Based in the UK, OFFA claims to be the country’s first shariah-compliant bridge financing provider for the real estate market.
According to Pankaj Gupta, co-CEO of GII, OFFA benefits from “strong net profit margins” and operates in a rapidly growing market worth an estimated US$6.2 billion.
“The value of bridge financing in the UK grew 8.5% in the first three months of 2022, and we believe the combination of property prices, demographics and OFFA’s unique market position makes this a compelling investment opportunity,” said Gupta.
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