CMS advises ADIB on a shari’ah-compliant acquisition financing

ADIB UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank, was the first UAE-based bank providing Islamic financial services to be licensed to operate in the UK.

CMS has advised Abu Dhabi Islamic Bank (ADIB) UK on the Shari’ah-compliant acquisition financing of Lateral House in Leeds for c.£24million on behalf of an Abu Dhabi-based private banking client.

ADIB UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank, was the first UAE-based bank providing Islamic financial services to be licensed to operate in the UK. The purchase of Lateral House, a 95,000 sq-ft Grade A office space located to the south of Leeds city centre, is the latest shari’ah compliant financing for ADIB UK and follows its funding earlier this year of the c.£32million acquisition of The Hub, located in the Aztec West Business Park, Bristol, on behalf of a private Saudi Arabia-based client. CMS also advised ADIB UK on this matter.

CMS’ head of Islamic Finance Shakeel Adli, who led the CMS team on both transactions, commented, “We are delighted to have supported ADIB UK on another significant transaction for the UK real estate market, a deal which reflects the UK’s continued attractiveness for real estate. The financing bears testament not only to the ability of Shari’ah-compliant funders to provide commercially appealing terms and to complete transactions promptly and efficiently but also to the interest of investors from the Middle East in assets across the UK.”

Paul Maisfield, head of Real Estate at ADIB UK, said,“We continue to see strong demand from Middle Eastern investors for the yield offered by UK commercial real estate. The ability to provide them with attractive Shari’ah-compliant financing solutions in a short timeframe is core to ADIB UK’s offer. Working closely with CMS’ experienced Islamic Finance team, we were able to structure a compelling transaction which met all of our client’s requirements.”