ADIB provides financing to Rasmala Long Income Fund for the acquisition of a £28.6M (AED 148.7M) Tesco let supermarket in the UK

The property, which was constructed in 2012, extends to 100,365 sqft and is leased to Tesco Stores Limited (the UK's largest supermarket chain) on a 25-year full repairing and insuring lease with 15.8 years remaining (with no tenant break options), at a rent of £1.46m (AED 7.59M) per annum which is subject to 5 yearly index linked upwards only rent reviews

  

Abu Dhabi:Abu Dhabi Islamic Bank (ADIB), a leading financial institution, has provided structured Islamic financing to Rasmala Long Income Fund to support its acquisition of a supermarket investment in Hattersley, Greater Manchester.   

The property, which was constructed in 2012, extends to 100,365 sqft and is leased to Tesco Stores Limited (the UK’s largest supermarket chain) on a 25-year full repairing and insuring lease with 15.8 years remaining (with no tenant break options), at a rent of £1.46m (AED 7.59M) per annum which is subject to 5 yearly index linked upwards only rent reviews. 

Paul Maisfield, Head of UK Real Estate at ADIB, said: “We are delighted to have supported Rasmala on their latest transaction.  There are clear synergies with our financing product and the objectives of the Long Income Fund to generate income and capital growth by investing in a Sharia compliant manner into a diversified portfolio of real estate assets benefitting from secure income derived from long leases.  

The UK grocery market has demonstrated strong resilience during the pandemic providing a secure investment alternative for our clients looking for long-term income security, particularly at a time when appetite for risk has faded in the face of an economic downturn. We are looking forward to continuing to support Rasmala in the execution of their UK commercial real estate investment strategy”.

Eric Swats, Senior Executive Officer of Rasmala, commented, “Tesco superstore is an excellent addition to Rasmala’s European real estate portfolio, taking our real estate AUMs to over USD 1 billion. We are delighted to partner with ADIB and look forward to working with them on expanding our international real estate portfolio.”

ADIB has strong track record in offering bespoke and competitive Sharia-compliant property financing solutions for its clients having built up a portfolio of financing assets in the UK of over AED 2 Billion (£400M) over the last three years.

Rasmala Long Income Fund was established in 2018 and has a diversified portfolio of real estate assets covering the UK, Europe and North America with a current Net Asset Value in excess of $250M. The fund is managed by Rasmala Investment Bank Limited ("RIBL") which is regulated by the Dubai Financial Services Authority ("DFSA").

Rasmala Long Income Fund was advised by Eversheds and ADIB was advised by CMS Cameron McKenna Nabarro Olswang LLP and Collas Crill.

ADIB was recognised as the “Best Islamic Bank in the Middle East” at the MEA Finance Awards 2020. It was previously named the “World’s Best Islamic Bank” by FT’s The Banker Magazine.

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About ADIB

ADIB is a leading bank in the UAE with more than AED 130 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).

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 Emirates airlines, Etihad and Etisalat and a wide range of financing products.

About Rasmala

Established in 1999, Rasmala is a leading alternative investment firm which manages assets on behalf of Gulf based investors including pension funds, family offices, corporations, endowments and financial institutions. Rasmala Investment Bank Limited is a wholly owned subsidiary based in the Dubai International Financial Centre (“DIFC”) and regulated by the Dubai Financial Services Authority (“DFSA”). For further details, please visit www.rasmala.com. 

For media information, please visit www.adib.ae  or contact:
ADIB                                                                 Brunswick Group
Radwa Shehab                                                   Sarah Abdelbary
Head of External Communications                    Associate
Direct: +971 2 6910169                                      Direct: +971 2 234 4600

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