UK arm of Abu Dhabi Islamic Bank closes financing transaction for the acquisition of Travelodge Hotel, located at London's Heathrow Airport
The UK arm of Abu Dhabi Islamic Bank has closed a commercial financing transaction for the acquisition of a Travelodge hotel, located at London’s Heathrow Airport.
Abu Dhabi Islamic Bank (ADIB) UK said the property was acquired by a Saudi-based client for AED194.6 million, with ADIB providing AED125.7 million of Sharia’a-compliant financing.
The hotel is leased to Travelodge Hotels Limited, the UK’s second largest hotel brand, with 20 years remaining on the lease, the bank said in a statement.
It added that the hotel is reportedly one of the best performing in Travelodge’s portfolio and is well placed to benefit from the decision to proceed with the new runway at Heathrow.
The hotel was developed in 2007 and comprises six floors, offering a total of 297 hotel rooms.
Paul Maisfield, head of real estate at ADIB UK, said: “We are seeing a rise in demand for UK commercial property from the Middle East, specifically the GCC... We are pleased to have supported this client complete a transaction which fulfilled their specific requirements.”
ADIB opened its office at One Hyde Park in London in May 2012 and was the first UAE-based bank providing Islamic financial services to be licensed to operate in the UK. Today, it is just one of six banks in the UK providing Sharia-compliant services.