The leading Islamic bank closed two UK deals in November alone, elevating its UK portfolio to around $680.6m.
On Tuesday, Abu Dhabi Islamic Bank (ADIB) announced that it has provided over AED1 billion ($272.3 million) in UK commercial real estate financing during 2021.
The leading Islamic bank closed two UK deals in November alone, raising its UK portfolio to around AED2.5bn ($680.6m).
“Investor appetite continues to be strong, particularly for assets offering secure long dated income in the regional markets, providing attractive cash on cash returns. ADIB remains committed to providing financing to investors that are seeking attractive returns within the real estate sector,” said Paul Maisfield, head of UK real estate at ADIB.
ADIB extended AED181m ($49.3m) in financing to Saudi Fransi Capital (SFC), an investment arm and wholly-owned subsidiary of Banque Saudi Fransi in Riyadh, Saudi Arabia, for their acquisition of the Gartner HQ office building in Egham, England.
The property is a Grade A office building with 107,842 sqft of office space arranged over ground and four upper floors, along with a four-deck car park, and is located approximately 37 km west of London.
The office is let entirely to Gartner UK Limited, on full repairing and insuring terms expiring in September 2032 (with no tenant break options), providing an unexpired term of 11 years with a parent guarantee from Gartner Inc.
“Over the last three years, we have seen a surge in real estate investments with the UK from Gulf investors looking for premium assets with steady rent returns over the long run,” said Abdulla Al Shehhi, global head of international business group at ADIB.
“ADIB UK has been a leader in providing strategic council to investors from the Gulf region on the real estate market in the UK and will continue to guide customers towards lucrative opportunities that suit their investment needs,” Al Shehhi added.
ADIB has also provided AED36m ($9.8m) in financing to the Al Rajhi Legacy Fund on their acquisition of Olympus House in Tachbrook Park, located to the south-east of Birmingham, England.
The property is let to Wright Hassall LLP, a full-service legal firm, and comprises a Grade A office building arranged over ground and two upper floors, covering 44,411 sqft. The tenant has occupied the property since 2006 and entered into a new reversionary lease in 2013, which expires towards the end of 2032.
Al Rajhi Legacy Fund agreed to purchase the property for AED56m ($15.4m).
Other noteworthy transactions by ADIB include financing for Albilad Capital to acquire the PWC HQ in Belfast, The Bank of London and the Middle East (BLME) to acquire the Centrica HQ in Edinburgh, Rasmala to acquire a Tesco let supermarket in Manchester, and Saudi Arabia’s Cedar Tree Investments to acquire a AED280m ($76.2m) residential portfolio in Manchester.
Over the past three years, ADIB has catered to the growing demand for commercial property investments in London, as well as major regional cities in the UK, including Belfast, Birmingham, Bristol, Edinburgh, Leeds and Manchester.
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