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Gatehouse Bank exits Rolls Royce’s manufacturing facility

Gatehouse Bank, a wholesale Shariah-compliant investment bank based in the City of London, has completed the sale of its Rolls Royce manufacturing and logistics facility in Scotland.

The total amount of the sale reached GBP55m, which yielded a profit on equity of 29.2 per cent post costs and taxes and an IRR of 10.3 per cent.
The 541,000 sq ft purpose built warehouse is adjacent to Glasgow International Airport and the M8 motorway. The property was purpose built for Rolls Royce Plc to cater for its manufacturing and distribution requirements and is currently leased to Rolls Royce until 30 March 2028. Rolls Royce has spent GBP85m in turning the facility into one of the most advanced large-scale manufacturing complexes in the UK.
Fahed Boodai, chairman of Gatehouse Bank, says: “We are delighted with the successful realisation of this investment, both in terms of timing and performance. This marks the seventh successful exit for the company in the past 12 months and underlines the success of our strategy of identifying and backing unique investment opportunities in global markets.
“The industrial property market in Scotland has shown great resilience during the financial crisis and Glasgow remains an important business destination attracting skilled workers in manufacturing and services.
“This investment has generated an excellent return for our investors and we will continue with the strategy we set out three years ago with the aim of enabling our clients to gain access to different real estate asset classes – from housing, business or office properties through to manufacturing and services, and providing them with wealth preservation, asset management and customer service excellence.”
Gatehouse Bank was advised by Savills in this transaction.

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