Abu Dhabi - Mubasher: ADIB UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank (ADIB), announced it has provided The Bank of London and the Middle East (BLME), a UK-based Shari'ah compliant bank, a financing for the acquisition of an AED 120 million (£26.95 million) Grade A office building in Edinburgh.

The office building is leased to Centrica as their corporate headquarters in Scotland until 2035, according to a press release.

Spanning over 94,214 square feet, the award-winning building offers Grade A accommodation over ground and three upper floors and forms part of the Edinburgh Waterfront regeneration area, the bank highlighted.

The building has previously received major design awards including the Scottish Design Award for Commercial Interior and the British Council for Offices National and Regional Awards for Commercial Workplace.

Paul Maisfield, Head of UK Real Estate at ADIB UK, said: “This latest transaction is typical of demand we are seeing amongst our client base. Over the last 18 months, 70% of our financing transactions have comprised regional investments, including Aberdeen, Bristol, Coventry, Leeds & Manchester.

“The availability of suitable products and the competitive nature of the market is the main challenge our clients are facing, so as well as providing financing we are assisting clients with the origination of investment opportunities via our network of agents in the UK,” Maisfield added.

It was recently reported by ADIB that the appetite of Middle Eastern investors for the UK commercial real estate assets is being driven by “a desire to diversify portfolio risk, the weakened pound, attractive rental yields in the strong performing regional markets, and long-term security of income.”

This interest was clearly showed in this latest transaction with over ten investors bidding on the property, with a prevalence of Middle East-based investors.