UK and Middle East based, CastleHill Capital, has announced plans to launch a Shariah-compliant UK student accommodation fund by early 2015.

The new fund has a target value of £100 million (US$156.6 million).

The fund is part of the CastleHill Group, which offers a fully integrated business model including student placement in universities, student advisory and accommodation.

Shafqat Malik, CastleHill Group CEO and former senior executive of Al Rajhi, Aldar and Mapeley, stated:

"We are very excited about launching our first Shariah compliant UK Student Accommodation Fund. CastleHill Capital aims to become the partner of choice for real estate investments by delivering superior returns. UK student accommodation has attracted over GBP2 billion of investments in each of the last two years with over 50% of capital coming from overseas".

Law firm Clyde & Co has been appointed as legal advisor for the development of the fund. Adil Hussain, the global head of Islamic Finance, will led the Clyde & Co team. Mr. Hussain commented:

"We are delighted to be instructed on this ground-breaking project, which will see the establishment of a Shariah compliant UK student accommodation fund. We look forward to working with the team at CastleHill Capital in bringing this transaction to a successful conclusion".

CastleHill Group currently has partnership agreements with over 50 universities. The company aims to leverage these strong relationships to offer high quality student accommodation in the UK.