Howard Kennedy advise London developer Al Mubarakia on Tobacco Dock PRS scheme
Law firm Howard Kennedy has advised London-based developer Al Mubarakia Limited on an Islamic Murabaha development finance transaction of £21m to convert offices into a PRS scheme of 124 residential apartments at Tobacco Dock, East London.
The finance was provided to a SPV by Gatehouse Bank Plc. Howard Kennedy advised on the complex deal structure, which involved the negotiation of the finance and security documentation. It also led extensive negotiations with the company’s landlord to vary the use clause in an existing lease, to obtain a licence to carry out the works, and planning advice as to the conditions to be satisfied in accordance with the Permitted Development rules.
The firm also provided construction advice and negotiation of the building contracts, appointments and collateral warranties and provision of a Certificate of Title for the property interests being charged, together with corporate and tax advice in structuring the transaction.
The finance completed on 10 February.
Howard Kennedy Real Estate Finance Partner Samantha Hook led the team, working closely with Banking partner Marcus Jamson advising on the Sharia-compliant facility, and assisted by solicitor Katharine Langabeer.
The team was also supported by solicitors John Conway (Corporate), Ivy Acorda and Mark Pritchard (Construction), Leigh Sayliss (Tax), Christine Hereward (Planning), and Real Estate Finance trainee Luke Barden de Lacroix.
Samantha Hook, who is also Chair of Women in Property, South East Branch said:
Al Mubarakia is an active property developer keen to create exceptional developments that benefit local communities. This residential scheme will bring much needed homes to let in the area and support much needed investment to the east end of London.
Al Mubarakia Limited has further plans for the area on sites it already owns, including converting a warehouse site into nine residential flats and using a vacant site for the development of a new four-star 242-room hotel, a 63-room apart hotel, shop and a bar and restaurant. Howard Kennedy has been working with Al Mubarakia for some time now and has an excellent working arrangement with this very important and busy property developer/investor.
A spokesman for Al Mubarakia said:
We are embarking on a major redevelopment of the area surrounding and including Tobacco Dock. Our vision is to create a sustainable, lively, mixed-use neighbourhood made up of leisure, residential, retail and commercial developments under the brand of ‘Tobacco Dock’.
We believe that our commitment to investing in and around Tobacco Dock will contribute strongly to the local area of Wapping, London Borough of Tower Hamlets and London as a whole, bringing an under-developed area back to life. Sovereign Court is just the first phase of our larger plan, it will serve in creating 124 new rental homes for the local area.
Building on our successful relationship with Howard Kennedy we have relied heavily on their expert legal advice on all aspects of the development and hope to continue this collaboration into the future.
About Howard Kennedy
Howard Kennedy has 53 partners and numbers 350 people in total and works alongside national and international clients across many disciplines, including banking, corporate and commercial, family, finance, employment, dispute resolution, intellectual property, private client, real estate and tax. Howard Kennedy has particular focus on the Financial Services, Media and Technology, Real Estate, Retail and Leisure, Sports Individuals sectors.
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