Shariah-compatible acquisition of Vodafone’s HQ supported by Foot Anstey’s Islamic Finance team

By Sam Pither

30 January 2023

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Foot Anstey LLP has provided support for the shariah-compliant acquisition of Vodafone's headquarters in Newbury, The Connection. Riyad Bank (London Branch) financed this undisclosed sum with the help of Foot Anstey's Islamic Finance team.

Legal advice for the 490,000 square feet transaction and partial leaseback was provided by Zahir Nayani (Partner) and Kate Heard (Senior Associate), with support from Leena Payyappilly (Associate).

IQON Capital facilitated the acquisition on behalf of Aljazira Capital, a Saudi investor and client of Riyad Bank. The plan is to redevelop the maintained buildings into a high-tech business campus while leasing back the rest to Vodafone.

According to the Bank of England Shariah-compliant finance, also known as Islamic finance, is based on the belief that money should not have any value in itself - it has no intrinsic value and is instead only a way to exchange goods and services. This then leads to the belief that money shouldn't be made from money, for example through interest.

Shariah-compliant financial services would also not invest in things which may cause harm, like gambling, alcohol or tobacco. Furthermore, it encourages partnership, meaning that, where possible, both profit and risks should be shared.

Addleshaw Goddard acted as UK lawyers for the buyer, with Maples acting as Jersey lawyers. Osborne Clarke acted as UK lawyers for the seller. Bedell Cristin acted as Jersey lawyers for Riyad Bank (London Branch).

The Osborne Clarke team included Corporate Real Estate Partner Alison Riddle and Associate Svetlana Kisyova; Legal Director Catherine Gunz and Associate Hayley Batki in Real Estate; Partner Tracey Wright and Associate Director Alex Makinson in Tax; Partner Mark Taylor, and Associate Director Georgina Graham in Commercial; and Partner Paul Killen and Associate Director Leanne Coates in Employment.

Zahir Nayani said: "Blended working is fast becoming the norm for people-centric businesses such as Vodafone. This deal demonstrates perfectly how discerning investors are capitalising on current economic headwinds by blending long-income strategies with defensive asset management plays.

“It was our pleasure to represent Riyad Bank (London Branch) on its latest financing and extend our congratulations to Aljazira Capital on its foray into the UK real estate market."

By Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset.

A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise.

Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.