ADIB funds over AED1 bln in UK real estate acquisitions

GCC investors eye UK's real estate sector
Olympus House in Tachbrook Park

Abu Dhabi Islamic Bank PJSC said Tuesday that it has financed well over AED1 billion ($272.29 million) in UK commercial real estate ventures in 2021.

The Abu Dhabi-based bank further revealed that it had also wrapped up two deals in the UK back in November, bringing its UK portfolio to around AED2.5 billion.

“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,” said Abdulla Al Shehhi, Global Head of International Business Group at ADIB.

Saudi banking subsidiaries were among ADIB’s lead clients in November.

The bank extended AED181 million to Saudi Fransi Capital (SFC), to acquire the Gartner HQ office building in Egham, England.

SFC is the investment arm and wholly owned subsidiary of the Saudi-based Banque Saudi Fransi.

The Emirati bank further partially financed Al Rajhi Legacy Fund’s AED56 million purchase of Olympus House in Tachbrook Park. ADIB provided AED36 million of the total acquisition sum.

“Investor appetite continues to be strong, particularly for assets offering secure long dated income in the regional markets, providing attractive cash on cash returns,” said Paul Maisfield, Head of UK Real Estate at ADIB.