Offa has received a £100m credit line from a fund managed by UAE-based Gulf Islamic Investments Group (GII).
According to the lender, the credit line is the largest of its kind outside of the Gulf, creating capacity for Offa to expand and diversify its bridging propositions in the UK market.
Formed as an ethical alternative to conventional bridging, Offa will use the funding to launch bridge finance products for heavy refurbishments and development, in addition to existing traditional bridge financing products.
The business was primarily launched for property investors from Britain’s four million strong Muslim community, who represent 6.5% of the population and seek finance that is compatible with their faith.
Nevertheless, Offa’s model, which forbids interest and ‘haram’ sectors such as gambling, alcohol, and the arms trade, has attracted an almost equal number of non-Muslim customers.
Bilal Ahmed (pictured), founding partner and managing director of Offa’s bridging division, said: “GII’s new funding line is fantastic news for Offa and the UK.
“It’s the single largest credit line to a British Islamic Finance House, underscoring GII’s confidence in the UK bridging market.
“Demand for Offa’s products is strong. We’ve seen a 10-fold increase in business these past 12 months.
“With bigger capacity, we can expand our asset book and product set to support many more brokers and clients with their finance requirements.”
Mohammed Alhassan, GII co-founder and co-CEO, added: “Our investors rely on GII to offer class-leading global investment options and bespoke opportunities to build wealth with a noble purpose.
“The UK has long been a focus for GII’s asset management plans, providing strong profit margins in a well-regulated and growing market.
“Offa represents an attractive home for GII’s managed assets, in a partnership strengthened by our shared experience of Sharia-compliant ethical business.”
Pankaj Gupta, fellow GII co-founder and co-CEO, concluded: “Our new credit line to Offa is in keeping with GII’s mandate to deliver ‘innovation with a purpose’.
“Offa is at the forefront of delivering Sharia-compliant bridge finance fit for the digital age. Its clients can now access a larger pool of ethical finance to develop their real estate property portfolios to meet changing market and consumer demands, supported by Offa’s highly experienced management team. It’s a win-win situation all round.”
“Available later this month, the key features for Offa’s new bridging products include finance of between £200,000 and £25m for a term of up to 18 months for heavy refurbishments and up to 24 months for development finance for properties in England and Wales.”
