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ADIB’s UK unit funds EUR 40m acquisition

ADIB’s UK unit funds EUR 40m acquisition
Travelodge Hotel comprises six floors
ADIB
ADIB
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 Abu Dhabi - Mubasher: Abu Dhabi Islamic Bank's (ADIB) wholly-owned unit in the UK has financed a deal for the acquisition, by a Saudi client, of the Travelodge Hotel at London’s Heathrow Airport.

The Saudi client acquired the hotel for GBP 40.3 million (AED 194.6 million), with ADIB UK contributing GBP 26 million (AED 125.7 million) of the transaction’s value, the bank said in a statement on Sunday.

“The ADIB UK team holds the expertise needed to ensure a smooth and successful transaction, in addition to providing competitive Sharia’a-compliant financing solutions,” head of real estate at ADIB UK Paul Maisfield commented.

The London-based hotel is leased to Travelodge Hotels Limited in an agreement that will remain in effect for 20 years, the Abu Dhabi-listed bank revealed. 

“We are seeing a rise in demand for UK commercial property from the Middle East, specifically the GCC,” Maisfield added.

Developed in 2007, the Travelodge Hotel comprises six floors including 297 keys.

It is worth noting that ADIB was the first UAE-based bank providing Islamic financial services to be licensed to operate in the UK after opening its office at One Hyde Park in London in May 2012. ADIB is currently one of six banks in the UK providing Sharia-compliant services.