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Offa secures £100m credit line from Gulf Islamic Investments Group

  • 09/04/2024
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Offa secures £100m credit line from Gulf Islamic Investments Group
Sharia-complaint bridging lender Offa as secured a £100m credit line from a fund managed by Gulf Islamic Investments (GII) Group.

The lender said that the credit line is the “largest of its kind outside of the Gulf”, which has added “significant capacity… to expand and diversify its bridging propositions”.

The company said that it would use the funding to launch bridge finance products for heavy refurbishments and development, which will sit alongside its existing traditional bridge financing deals.

The products will be available later this month, with the key features for Offa’s new bridging products including finance of between £200,000 and £25m at 75% finance to value (FTV) and 85% finance to cost (FTC) for a term of up to 18 months for heavy refurbishments and up to 24 months for development finance for properties in England and Wales.

GII took a majority stake in the business in mid-2022 and invested in the firm last year.

The business is primarily aimed at Britain’s four-million-strong Muslim community who want an ethical finance option.

“GII’s new funding line is fantastic news for Offa and the UK. It’s the single largest credit line to a British Islamic Finance House, underscoring GII’s confidence in the UK bridging market. Demand for Offa’s products is strong.

“We’ve seen a tenfold increase in business these past 12 months. With bigger capacity, we can expand our asset book and product set to support many more brokers and clients with their finance requirements,” said Bilal Ahmed, founding partner and managing director of Offa’s bridging division.

Mohammed Alhassan, GII co-founder and co-CEO, said: “Our investors rely on GII to offer class-leading global investment options and bespoke opportunities to build wealth with a noble purpose.

“The UK has long been a focus for GII’s asset management plans, providing strong profit margins in a well-regulated and growing market. Offa represents an attractive home for GII’s managed assets, in a partnership strengthened by our shared experience of Sharia-compliant ethical business.”

Pankaj Gupta, fellow GII co-founder and co-CEO, added: “Our new credit line to Offa is in keeping with GII’s mandate to deliver ‘innovation with a purpose’. Offa is at the forefront of delivering Sharia-compliant bridge finance fit for the digital age.

“Its clients can now access a larger pool of ethical finance to develop their real estate property portfolios to meet changing market and consumer demands, supported by Offa’s highly experienced management team. It’s a win-win situation all round.”

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