Abu Dhabi Islamic Bank (ADIB) UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank - a leading financial institution, believes there are compelling investment opportunities to be found across the UK real estate sector. The bank's London-based team is offering financing support and advisory services for GCC clients looking for commercial and residential property investments across the UK.
With the correction in residential prices in London tending to grab the headlines, the strong performance of the UK's "Big 6" regional office markets (Manchester, Birmingham, Edinburgh, Glasgow, Leeds and Bristol) is perhaps less well known. It has been reported that the regional occupier market saw a record year of take-up last year, transacting 20% higher than 2016. As a result of the strong demand for space and limited supply across the Big 6, office rents rose in a number of locations in 2017. Bristol led the way with a 14% increase over the year to finish at £32.50 per sq ft. The outlook for 2018 is for further rental growth with supply shortages likely to persist.
Investment volumes across the Big 6 regional office markets in 2017 were the highest for over a decade. Data released by JLL shows that office investment volumes in the Big 6 hit £2.9bn in 2017, 49% up on 2016. Manchester led the way for the year as a whole, with volumes of £908m which accounted for 30% of overall activity. Birmingham was the second most active market with £762m transacted.
This record activity reinforces the regional office markets as a continued draw for overseas investors attracted by the yield gap with London and other European markets.
Bruno Martorano, ADIB UK CEO said "We see particularly a strong demand amongst GCC-based clients seeking to diversify their portfolios and buy property as a long-term investment for their families. Secure, long-term income yields provided by UK property, both in London but increasingly in regional centers, can form a key part of a balanced portfolio. Over the last six years, ADIB UK has established a leading position in providing Sharia'a-compliant financing to a range of individual and larger investors. We look forward to expanding our operations and range of services over the coming years to serve the growing demand in the Middle East."
Paul Maisfield, Head of UK Real Estate at ADIB UK, said: "We have seen a rising demand to purchase property in the UK, particularly in the regional office sector of the market with clients focusing on prime assets seeking steady and predictable income streams. The availability of suitable products is the main challenge our clients are facing with motivated sellers in short supply. Consequently, through our office, located in the heart of London, ADIB UK is able to provide a full-service proposition including Sharia'a-compliant property financing solutions, alongside leading advisory services, to support our clients UK investment strategies. We work closely with these clients to ensure a seamless cross-border process to best meet our customers' needs."
ADIB has a team in the UK that works with clients to provide packages and advice tailored to customer needs, whether it is financing residential or commercial properties. Earlier this year, ADIB arranged a structured Islamic financing transaction to fund the acquisition of The Hub, located at the Aztec West Business Park, Bristol, for AED 1678 million (£32.25 million) on behalf of a private Saudi based client.
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, being one of just six of these that are fully Sharia-compliant offering a range of services including current and savings accounts.
For more information please visit http://www.adib.co.uk/ or call +44 20 7590 2200