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Abu Dhabi Islamic Bank (ADIB) has provided AED 100 million ($27 million) financing to support the acquisition of a Sainsbury’s store in Edinburgh, Scotland.
The bank announced that it had supported Urbium Capital Partners (UCP) on the acquisition of the 86,000 sq.ft. store and filling station, which is on a 4.6 acre site in the Scottish capital, and is let to Sainsbury’s Supermarket Limited on a 25-year lease.
“The property occupies a highly prominent site offering excellent accessibility and visibility, benefiting from a large and affluent catchment area with a population of 250,000 within three miles,” the bank said in a statement.
Paul Maisfield, head of UK real estate at ADIB, said the store is capable of ‘performing an omnichannel function’ which makes it future proofed against changes in the sector.
“We look forward to helping support UCP execute their UK commercial real estate investment strategy targeting well located core assets with good income visibility and strong tenant covenants, with a focus on cash yield.”
Maisfield said the Sainsbury’s acquisition is the fourth supermarket investment transaction ADIB has financed in the UK in the last 12 months, demonstrating the strong demand for prime supermarket property investments as the sector demonstrated resilience during the COVID-19 pandemic.
“We expect to see further deal flow in this sector,” he said.
Suliman Al Aujan, managing partner at UCP, said the acquisition is UCP’s debut transaction and is an asset benefits from strong trading fundamentals.
“UCP will strive to build a defensive portfolio of assets that target income as the principal driver of attractive risk adjusted returns while looking to achieve capital growth through active management,” he said.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
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