Abu Dhabi Islamic Bank PJSC on Tuesday announced that it has provided over AED1 billion ($270 million) in UK commercial real estate financing during 2021, said sources.
The bank closed two deals in the UK in the month of November alone, taking its UK portfolio to around AED2.5 billion, media reports said.
ADIB extended AED181 million 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 in Egham, England, the reports said.
ADIB also provided AED36 million to the Al Rajhi Legacy Fund on their acquisition of Olympus House in Tachbrook Park, Birmingham, England.
Al Rajhi Legacy Fund agreed to purchase the property for AED56 million.
Paul Maisfield, Head of UK Real Estate at ADIB, said, “ADIB remains committed to providing financing to investors that are seeking attractive returns within the real estate sector.”
Abdulla Al Shehhi, Global Head of International Business Group at ADIB, commented, “Over the last three years, there is a surge in real estate investments with the UK from Gulf investors looking for premium assets with steady rent returns over the long run.”
The reports said that 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, said sources.
The transaction also includes enabling Rasmala to acquire a Tesco let supermarket in Manchester and for Saudi Arabia’s Cedar Tree Investments to acquire an AED 280 million residential portfolio in Manchester.
ADIB was recognized as the “Best Islamic Bank in the Middle East” at the MEA Finance Awards 2020. ADIB was previously named the “World’s Best Islamic Bank” by FT’s The Banker Magazine.