Abu Dhabi Islamic Bank taps the UK real estate market - IFN

Abu Dhabi Islamic Bank taps the UK real estate market

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UK: Abu Dhabi Islamic Bank (ADIB) has provided a GBP20 million (US$32.09 million) Islamic financing package to fund the development of Westbourne House on Westbourne Grove in central London. The transaction was tailored to meet the demand of investors to acquire, refurbish and resell high-valued luxury properties to international buyers. Westbourne House is a prime 1980’s commercial property combining office and retail space in the Royal Borough of Kensington and Chelsea. In response to the growing demand for real estate investments in central London, a consortium of GCC investors purchased the property in 2012 with the aim of converting it into luxury residential apartments within a period of three years. Commenting on the deal, Arif Usmani, the global head of wholesale banking at ADIB, said: “Resilient demand from international buyers for prime residential real estate has underpinned the performance of London's property market which has outpaced most other markets in recent years.” Arif further commended the pivotal role of the UK's financial services sector to encourage the global acceptance and growth of Islamic finance products and services and the creation of a positive regulatory environment. He added that ADIB seeks to develop its UK business by providing real estate investors with new alternatives for funding. The bank registered a net profit of AED395.5 million (US$107.66 million) in the third quarter, marking a 20.4% increase against the same period last year. Its total assets grew by 18.2% to stand at AED96.4 billion (US$26.24 billion). Fitch has assigned the bank a long-term issuer default rating at ‘A+’ with a stable outlook while affirming its viability rating at ‘bb’.