Boston, MA (PressExposure) November 24, 2011 -- News that a major Bahrain-based alternative investment bank has increased its investment in US real estate has been welcomed by Alternative Asset Analysis (AAA) as a further sign of the popularity of alternative assets among Muslim investors.
Investcorp has just announced the closure of new deals to buy large office complexes in both New York and California's Long Beach region. It has also recently completed deals to buy office blocks in London.
Other real estate owned by Investcorp includes a $37 million building on Boynton Beach in Florida and a huge 221-unit residential community complex in Atlanta. The latest acquisitions are worth some $300 million, according to reports.
The firms makes alternative investments that are compliant with Islamic laws that prevent people from investing in propositions that could be seen as involving any form of gambling. Investcorp's president for the Gulf business, Mohammed Al Shroogi, said, "Our historical experience in the US real estate market allowed us to identify and acquire these three Sharia-compliant properties."
He added, "They complement our growing mix of investments selected for their strong and stable tenant histories, ties to growing metropolitan communities, and above market cash yields."
AAA claims that alternative investments can be a good option for Muslim investors due to the way they are structured. Investing in forestry, for example, offers a stable investment in a tangible asset that will grow predictably in size and therefore in value. Forestry schemes such as the sustainable plantations grown by firms like Greenwood Management in Brazil, can also be seen as more ethical choices, as they are helping to reduce deforestation in developing countries.
AAA's analysis partner, Anthony Johnson, explained, "more and more investors are moving away from traditional equities and into more alternative asset classes in order to reduce the risk in their portfolios. This is something Shariah-compliant investors have been doing for some time, and the model seems to work."