Tadhamon Capital, the Bahrain-based Islamic investment company, has announced its successful exit from Paris Gardens – its first investment in a central London student accommodation property.

The sale of the 253-bed property, which was developed in a joint venture with McLaren Property in July 2012, saw investors of Tadhamon Capital achieve more than 70 percent return on their invested capital within a 30 month period, the company said in a statement.

Since completion in the summer of 2013, the property was fully let and has generated a stable net income of 8 percent to investors. The sale of the property generated an IRR in excess of 25 percent, it added.

The acquisition of Paris Garden formed part of the Tadhamon Capital Apache Capital Partners’ (TC-AC) managed Social Infrastructure Investment Platform with a current gross AUM of over £350 million.

Simultaneously, in an off-market transaction with Apache Capital, Tadhamon Capital has entered into a JV agreement for the development of a new, high-quality student accommodation, located at the centre of Kingston-Upon-Thames in south London.

The project’s gross development value is in excess of £45 million with projected returns targeted to exceed 15 percent IRR over a five year investment period. The property will include 210 studio rooms of varying sizes and a 4,835 sq ft of commercial space.

Hesham AlGassab, executive director of investments at Tadhamon Capital, said: “Tadhamon Capital has been investing in the UK real estate market since its inception in 2009 and has developed a strong track record in the Social Infrastructure Platform which focuses on investing in student accommodation, schools, care homes, and social housing units. Today this platform has more than £350 million of assets under management.

“Student accommodation remains a particular focus of this platform. Currently, we have more than 1,500 beds across London, Cambridge, Ipswich and Kingston, which continue to deliver attractive dividend yield levels and also achieving solid capital gains.”

Tadhamon Capital said it aims over the next year to increase its assets under management in the UK to more than £500 million.

Ahmed Sultan, CEO of Tadhamon Capital, added: “We are delighted to announce both the completion of another successful exit and investment in the UK market.

“We have a strong pipeline of transactions which we are evaluating and look to build our current portfolio of assets across the GCC, UK, and Turkey whilst also looking to expand into the US market and potentially parts of MENA region.”