Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has provided financing to Saudi Arabia’s Cedar Tree Investments to acquire a AED 280 million (£39 million) residential portfolio in Manchester, comprising four freehold rental properties, with a total of 163 units.

The transaction means that property financing in the United Kingdom arranged through ADIB’s office in Knightsbridge, London, has risen to over AED 850 million, secured against property with an aggregate market value of over AED 1.35 billion. GCC investor appetite is driven currently by a desire to diversify portfolio risk, the weakened pound, attractive rental yields in the regional markets and long-term security of income, particularly in cities such as Manchester, Bristol and Birmingham, which continue to outperform London, driven by strong local occupier market conditions.

Paul Maisfield, Head of UK Real Estate at ADIB UK, said: “We continue to see an increase in demand from Gulf investors, particularly for properties in the regional cities with clients focusing on prime assets providing secure and predictable income streams. We doubled our financing assets in the UK in 2018 with the majority of properties being outside London and we are on track to double the size of the portfolio again in 2019. 

“This latest deal is a prime example of investor appetite, as the portfolio provides an attractive yield, in a market which benefits from strong fundamentals with robust demand outstripping supply which is driving rental and capital value growth. We also continue to see keen interest in the regional office and logistics markets, particularly properties let to strong covenant tenants on long term leases with upwards only rent reviews. The availability of suitable products is the main challenge our clients are facing, so as well as providing financing, ADIB is assisting clients with the origination of investment opportunities via our network of agents in the UK.”

The acquisition by Cedar Tree Investments, whose investments are overseen by AIMS Investments, one of Saudi Arabia’s largest investment firms, was for Basil House on 105-107 Portland Street, Salisbury House on 123 Princess Street, 51 King Street, and 341 Great Western Street.

According to data from property consultancy Knight Frank, the total value of the residential investment sector in the UK will rise 68 per cent by 2025, taking the total value of the sector to £146 billion.

ADIB UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank, offers full-service proposition, including Shari’a compliant property financing solutions, alongside advisory services for its clients.

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About ADIB
ADIB is a leading bank in the UAE with more than AED 124.6 billion in assets. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate, business, private banking and wealth management solutions. The bank was established in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX).

In the UAE, the Bank has more than 2,000 employees and remains one of the leading banks in the recruitment, development and promotion of local talent in all the markets in which it operates. The bank has one of the highest Emiratization ratios with approximately 36 percent of the bank’s workforce being UAE Nationals.

ADIB has presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan and Iraq.

Named World’s Best Islamic Bank by The Financial Times’ The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Etihad and Etisalat and a wide range of financing products.

For media information, please visit www.adib.ae or contact:
ADIB                                                        Brunswick Group
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