Bahrain based Tadhamon Capital acquires the UK’s Coxlease Special Needs School

Tadhamon Capital announced Monday it had acquired the UK’s Coxlease School through a group of investors. The Bahrain based Tadhamon Capital undertook the investment valued at £17.5 million ($28 million). Tadhamon Capital advised on the transaction and acted as an arranger of the financing.

The Coxlease Special Needs School is located south of London in the New Forest in Lyndhurts, Hampshire. It is a specialist residential school for boys aged nine to 18 with severe behavioral, emotional, social and learning difficulties and is run by the Priory Group.

The school was acquired at a net initial yield of 7.8 per cent and will generate an attractive average cash yield of around 9 per cent to its investors, with a 30-year lease guaranteed by the Priory Group.

Tadhamon Capital chief executive officer Waleed Abdulla Rashdan said the Coxlease acquisition marks the first of a number of UK deals which the firm intends to close over the next two to three years. He further said that these transactions should diversify the portfolios of its shareholders and investors, providing them with exposure to the social infrastructure sector.

Established in 1980, the Priory Group is Europe’s leading independent provider of special needs health care, secure and step down services, specialist education, complex care and neuro-rehabilitation services, fostering and care homes, operating more than 50 facilities across Britain.

The school was acquired at a net initial yield of 7.8 per cent and will generate an attractive average cash yield of nine per cent p.a. to its investors, with a 30 year lease guaranteed by the Priory Group.  Waleed Abdulla Rashdan further added that this sector has held up well compared with other sectors during the downturn seen by the market during the last couple of years, both within the UK and internationally.

He also expressed that with the recent surge in demand for UK properties on the back of the drop in property values; there was a challenge in sourcing the appropriate high quality assets that could generate the desired returns for investors.

With so much focus being directed at the sector from both within the UK and abroad, the challenge continues to be selectively targeting and identifying the appropriate quality assets within Tadhamon’s social infrastructure diversification strategy; however, through forging strategic alliances, the firm is poised to deliver its investors attractive returns from a mature market such as the UK, he added.

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