Abu Dhabi, UAE; 14 December 2021: Leading Islamic financial institution Abu Dhabi Islamic Bank PJSC, today announced that it has provided over AED 1 billion (£200 million) in UK commercial real estate financing during 2021.
The bank closed two deals in the UK in the month of November alone, taking its UK portfolio to around AED 2.5 billion (£500 million).
ADIB extended AED 181 million (£37.05 million) 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 constructed in 2017, with 107,842 sq ft of office space arranged over ground and four upper floors, along with a four-deck car park. It is located approximately 23 miles (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), thus providing an unexpired term of 11 years, with a parent guarantee from Gartner Inc.
ADIB has also provided AED 36 million (£7.4 million) 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. It comprises a Grade A office building arranged over ground and two upper floors, covering 44,411 sq ft, developed in 1988. 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 AED 56 million (£11.45 million).
Paul Maisfield, Head of UK Real Estate at ADIB, said: “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. We also extend a big thank you to the fantastic UK team for their continued hard work and professionalism and all of our colleagues in the UAE that have helped us reach this important milestone.”
Abdulla Al Shehhi, Global Head of International Business Group at ADIB commented: “ 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. 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.”
Over the last 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. 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 for Saudi Arabia’s Cedar Tree Investments to acquire a AED 280 million (£39 million) residential portfolio in Manchester.
ADIB was recognised as the “Best Islamic Bank in the Middle East” at the MEA Finance Awards 2020. It was previously named the “World’s Best Islamic Bank” by FT’s The Banker Magazine.