By Sam Bridge
Deals have been agreed for a UAE-based client to refinance a AED900m London healthcare facility and a Bahrain-based client for the acquisition of a logistics hub in Edinburgh
Abu Dhabi Islamic Bank (ADIB) has provided through ADIB UK a combined AED320 million ($87.1 million) Sharia’a-compliant structured financing for two clients from the Gulf.
Deals have been agreed for a private UAE-based client to refinance a AED900 million prime central London healthcare facility and a Bahrain-based client for the acquisition of a AED55 million logistics hub in Edinburgh.
The London property comprises one of the most established private healthcare facilities in the UK capital and is operated by an international healthcare group.
The Edinburgh property, let to Royal Mail, consists of a distribution warehouse and office facility extending to 94,323 sq ft situated in the Scottish city’s premier industrial location, South Gyle Industrial Estate, a statement said.
Paul Maisfield, head of UK real estate at ADIB UK, said: “We are delighted to have been able to support our clients with highly-structured financing solutions that meets their specific requirements in real estate finance, secured against a strong income-producing, high-quality assets in London and Edinburgh.”
He added: “We expect to witness good growth in our real estate financing business in the UK during 2020. The UK still offers transparency and security that is not available in many other parts of the world. This, combined with sterling remaining weak against the dollar makes the UK an even more comparatively attractive investment proposition.
"The biggest challenge facing our clients is securing assets, particularly those offering long-term secure income, given the competitive nature of the market with investor demand outstripping supply.”
Over the last two years, the bank said it has catered to growing demand for commercial property investments in London, but also increasingly in major regional cities, including Bristol, Leeds and Manchester.
Among its major transactions, ADIB provided financing for The Bank of London and the Middle East to acquire a AED120 million Grade A office building in Edinburgh and financing to Saudi Arabia’s Cedar Tree Investments to acquire a AED280 million residential portfolio in Manchester.