Gatehouse Bank has partnered with Shepherd and Wedderburn to complete a sharia-compliant refinancing facility for an office scheme in Aberdeen.
Shepherd and Wedderburn acted as the legal adviser to Youngberry Properties – the owner of Bridge View and Consort House – on the refinancing of the premises.
The properties – which total 159,170 sq ft of floor space – are fully let to the oil and gas service provider Petrofac as its North Sea office headquarters and NHS Scotland.
Sharia-compliant Gatehouse Bank advised Youngberry on the investment and financing aspects of the deal.
The funding was completed by way of a commodity murabaha facility from an established international bank.
A murabaha transaction is a form of Islamic financing based on the purchase of underlying assets and their sale at a profit mark-up that enables a financier to provide funding without an interest-bearing loan.
Peter Alderdice, senior associate at Shepherd and Wedderburn’s banking and finance team, said: “This is a very significant deal for Youngberry Properties and we are pleased to have used our expertise in Islamic finance to help secure the refinancing of two of the largest commercial properties in the city.
“Having completed a number of Islamic finance deals of this kind, we know how to overcome the challenges involved in order to ensure smooth, successful transactions.”
Shepherd and Wedderburn advised Youngberry on banking, real estate, construction and tax.
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