Abu Dhabi Islamic Bank (ADIB) has provided AED 200 mln (€46 mln) of structured Islamic financing for Middle East investors on two supermarket assets in the UK.
The first transaction supported the acquisition of a Tesco Extra store and ancillary retail parade in Oldham, Greater Manchester by Kuwait Business Town Real Estate. The property is located on Huddersfield Road (Oldham) and has a 13-year unexpired lease term to Tesco Store.
The second transaction comprised a purpose-built supermarket extending to over 34,000 ft2 (3,160 m2) in Weston-super-Mare, Somerset owned by Capital Trust. The building is leased to Waitrose until May 2045.
Olga Aburdene, CEO of Capital Trust, said: 'We are pleased to receive the continuous support of ADIB that has allowed us to maximise the shareholder returns while pursuing our strategy for this asset.'
Paul Maisfield, head of UK real estate at ADIB, said: 'Our clients have a strong appetite to acquire UK assets, particularly those benefitting from long dated income with proven operational resilience offering good income visibility underpinned by strong tenant covenants, providing attractive cash on cash yields.
'Our expertise on the ground, ability to source, structure, provide competitive financing terms and efficiently execute transactions is proving an attractive proposition to our Middle East clients which is driving growth of the UK business and has established ADIB as a leading player in the UK Islamic commercial real estate financing sector.'
Kuwait Business Town Real Estate was advised by Keystone Law & Jade Merchant Bank. Capital Trust was advised by Dentons. ADIB was advised by CMS Cameron McKenna Nabarro Olswang LLP.
