Reading: Clarkslegal advises local charity on Islamic financing

Clarkslegal LLP has advised a Reading charity on obtaining finance for its acquisition of a prominent former corporate HQ building in Reading. The deal was based on Islamic financing, structured around the principles of diminishing Musharakah. 

Led by corporate partner Ashan Arif, Clarkslegal worked closely with a leading London-based Islamic finance scholar to put together a deal structure that satisfied both the client’s key objective (Sharia compliance) as well as being acceptable to the lender. Clarkslegal drafted and negotiated the key finance and security documents and also advised the trustees of the charity on the requirements of the Charities Act 2011.

The general secretary of the charity thanked Clarkslegal for its contribution: “This was a groundbreaking deal for us. Clarkslegal, through Ashan Arif, was instrumental in helping to put together a Sharia-compliant financing structure; the only basis upon which we would do this deal. This involved complex documents and negotiations with the funder and throughout the entire process Clarkslegal was very supportive and innovative.”

Commenting on his team's handling of the complex negotiations, Arif said: “From the outset, we were fully aware of how important this deal was for our client. Negotiations were sometimes tricky and there was real pressure from the seller to complete the sale. Yet again, my team excelled in understanding and delivering on the client’s key objectives to achieve an outstanding result.”

City lawyer SNR Denton acted for the lender. Maclay Murray and Spens acted for the seller.