Autarky Sukuk funds developments worth £11.2 million

By Bridging Loan Directory 9th April 2024

Autarky Sukuk, a leading provider of Shari’ah compliant investment opportunities in the UK, has financed a series of developments with a combined Gross Development Value (GDV) of £11.2 million since the start of 2024.

Autarky’s innovative Sukuk programme, which deploys investors’ capital in an ethical, Shari’ah compliant manner, has financed five construction projects across the UK so far this year.

These include a 35-unit apartment building in Bradford with a GDV of £6.7 million as well as the construction of a substantial executive home in Preston with a GDV of £2.5 million.

Other schemes financed include:

A mixed use development in Bedford, featuring a ground-floor retail unit and a first-floor apartment, with a GDV of £400,000
An office-to-residential conversion project in Bedford with a GDV of £430,000
A five-bedroom heavy refurbishment project in London, with a GDV of £1.2 million

The investments are part of Autarky Sukuk’s commitment to provide competitive finance to experienced property developers and steady returns to HNW and sophisticated investors who want to deploy their capital in accordance with Islamic principles.

Demand is also strong among investors drawn to environmental, social, and governance (ESG) investment strategies.

Autarky’s sukuk, which is listed in Vienna, is an asset-based instrument. Rather than receiving interest payments, investors receive a fixed share of the profits generated by the underlying Shari’ah compliant loan receivables. The profit coupon is 10% per annum.

This unique structure can also provide cost-effective finance for property investors, as the fees and profit charged are based on the net loan, in accordance with Islamic principles which prohibits compounding.

This means the process is highly transparent, with the potential to save developers thousands compared to conventional methods of financing.

The team behind Autarky Sukuk have decades of experience between them in real estate finance and banking, as well as access to an extensive network of successful property investors and developers.

This combination means investments can be put to work quickly, with one prominent investor, Cur8 Capital (IFG), seeing their investment successfully deployed in just four days.

The announcement comes after Autarky developed a handy zakat calculator to help Muslims work out their compulsory charity contributions during Ramadan.

It allows users to enter details of any financial assets they own – from cash, shares and pension savings, to cryptocurrency and precious metals – and then provides an instant, personalised zakat calculation.

Ibrahim Khan, Islamic finance expert at Cur8 Capital (IFG), comments:

“As an investor, it is reassuring to know that the capital given to fund these projects align with our ethical principles.

Coupled with being UK property based, the Sukuk programme was very attractive with its return profile.’’

Shoaib Bux, Director of Autarky Sukuk, commented:

“We are thrilled to have financed such a wide variety of projects as part of our ongoing support of the UK real estate sector.

Our latest investments showcase the versatility of our Sukuk programme, which provides much-needed, and competitively priced, finance to experienced property developers working on a range of property types at varying stages of development.

As the property market picks up speed following 2023’s price reset, we’re seeing a surge in demand from investors seeking Shari’ah-compliant investment opportunities in British bricks and mortar.

Autarky Sukuk offers a unique solution that aligns with their values and delivers very attractive returns.”