Scenario
The clients are an Islamic Bank based in GCC and an established UK real estate development company requiring specialist support to formalise their joint venture arrangement to acquire and develop a portfolio of high yield student housing in UK. 

Suntera Global’s Solution
Our expert has helped establish the initial structural framework which involved the creation and ongoing administration of an offshore financing vehicle (“Finco”) for the Islamic Bank and an “orphan structure” to isolate the profit component from the economic activity. The orphan structure consisted of a charitable trust, that formed an investment company (“Inv Co”), which in turn formed a property company (“Propco”) for the purposes of acquiring student housing. Using an orphan structure in this manner showcased the commitment to ethical practices and vigilance required in the Islamic finance industry, and the Islamic Bank repeated the same structuring a further 4 times to ring fence each project. Operationally the Islamic Bank used a Murabaha between Finco and Inv Co for the purposes of the acquisition and ongoing funding of Propco, and we regularly undertook commodity Murabaha trades, as and when funding was required.

Our expert’s experience is for the service provider, such as Suntera to provide Directors for all companies, aside from the finance company (which was operated by the Islamic Bank), from acquisition to completion of the development of each project. Company secretarial, corporate governance and administration/ payment support was provided to the five structures.

Example Structure

Scenario
Our client owns a portfolio of hotels, luxury assets and other investments in Singapore and Hong Kong and required professional support as part of their succession planning objectives. A key requirement for the client was to ensure Sharia compliance in a tax neutral and stable jurisdiction.

Suntera Global’s Solution
Suntera worked alongside the client to understand his goals and concerns surrounding succession planning which resulted in the client settling 6 Jersey discretionary trusts, for the benefit of his children. Each Trust was settled for the purpose of ring-fencing specific assets, which were gifted into the structures by the Settlor via special purpose vehicles. 

Suntera Jersey provided a board of Trustees to each Trust and the client/ settlor, and his spouse were appointed by the Trustees as representatives of protector and investment committees, thus allowing powers of investment and distribution to remain within their control. The Trust deeds were drafted in accordance with strict Sharia principles. 

Suntera Hong Kong formed and administered each special purpose vehicle and supported the client in person throughout the process.

Example Structure

Scenario
Multiple clients require support to establish a structure in  jurisdictions globally, with ongoing professional support for their Sharia compliant structures, whilst retaining an element of control.

Suntera Global’s Solution
We provide registered office, formation, corporate governance and administration services to suit clients undertaking Sharia compliant activity in a variety of jurisdictions. We already assist many of our clients with regulatory and tax filings and offer a suite of services from registered office only to fully managed, including provision of directors, trustees, company secretary, administration and accountancy.

We work with longstanding clients who also wish to retain a certain level of control and we have assisted with structuring solutions in order that they can choose our services to suit their needs. We are comfortable with clients either using their own knowledge of Sharia compliance or using an internal or external advisory board.

Example Structure

Scenario
A broad range of clients, including both investors and asset managers, have sought expertise in Luxembourg to support their Islamic Finance structuring.

Suntera Global’s Solution
Suntera’s team in Luxembourg has supported investment through unregulated structures, where a fund is typically domiciled outside of Luxembourg, including in the UK, Jersey, Asia, the US or Cayman. Providing clients with the desired EU environment for real estate investment structuring, the team works across Holding, Financing and Property Companies, under the form of a SARL (LLC/ private limited company). Whether it involves Sukuk issuance, investment funds or other Islamic finance instruments the SARL can be structured to align with Islamic ethical standards.

The range of services offered by Suntera’s Luxembourg team is broad and has included domiciliation, assistance with incorporation, provision of a Board of directors, company secretarial duties, compliance with accounting, VAT and reporting requirements, assistance with acquisitions and exits, and daily administration.

We can meet all your structuring and administration real estate needs, whether for high value personal property or commercial real estate. The responsible management of real estate is at the heart of our proposition and with more than £1bn of real estate assets under management, our team of corporate structuring, tax and accounting professionals is primed to assist you in realising your international property investment ambitions. 

Example Structure