Abu Dhabi Islamic Bank has provided £40m of structured Islamic financing for two UK supermarket deals.
Kuwait Business Town Real Estate Co bought the Tesco Extra store and ancillary retail parade in Oldham. A separate deal was for a 34,000 sq ft purpose-built Waitrose supermarket in Weston-super-Mare owned by Capital Trust.
Capital Trust chief Olga Aburdene 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.”
ADIB’s head of UK real estate, Paul Maisfield, 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.”
Kuwait Business Town Real Estate Co was advised by Keystone Law & Jade Merchant Bank. Capital Trust was advised by Dentons. ADIB was advised by CMS Cameron McKenna Nabarro Olswang.
ADIB has established itself as a market leader for Sharia-compliant property financing solutions for its clients in the UK, closing £150m in senior financing in this year alone. ADIB is a leading bank in the UAE with around £25bn in assets.
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