Financing approved by ADIB UK after strong Middle East interest
Abu Dhabi Islamic Bank in the UK (ADIB UK) has provided financing for the Bank of London and the Middle East (BLME), to buy a AED120 million ($32.6m) Grade A office building in Scotland.
The Foster and Partners-designed building in Edinburgh, which has previously won the Scottish Design Award for Commercial Interior and the British Council for Offices National and Regional Awards for Commercial Workplace, forms part of the city’s waterfront regeneration area.
The building is let to GB Gas Holdings and guaranteed by Centrica.
ADIB recently reported that Middle East investor appetite for UK commercial real estate assets is being driven by a desire to diversify portfolio risk, the weakened pound, attractive rental yields in the strong performing regional markets and long-term security of income.
Paul Maisfield head of UK Real Estate at ADIV UK, revealed there was interest in the property from ten investors, with a strong prevalence from the Middle East.
“This latest transaction is typical of demand we are seeing amongst our client base. Over the last 18 months, 70 percent of our financing transactions have comprised regional investments, including Aberdeen, Bristol, Coventry, Leeds and Manchester,” he said.
It comes after BLME acquired Atlantic Quay 1 in Glasgow for $32.5m last year.