ABU DHABI (ALETIHAD)
Abu Dhabi Islamic Bank (ADIB) has provided a £27 million (Dh133 million) five-year Sharia-compliant financing facility to Bahrain-based Blacksand Company for a logistics warehouse in Glasgow, Scotland.
The transaction is ADIB’s third financing arrangement with the investment firm, the bank said in a statement.
The 620,090-square-foot warehouse serves as a regional distribution hub for UK supermarket chain Morrisons, supplying 62 stores across Scotland. Morrisons has occupied the property for more than 30 years.
The property has an Energy Performance Certificate rating of “A” and is leased for a remaining term of more than 21 years. The lease includes annual inflation-linked rental increases, providing progressively rising income from the property, the statement said.
“Completing our third transaction with Blacksand Company reflects the strength of our long-standing relationship and the confidence our clients place in ADIB as a trusted Sharia-compliant financing partner,” Paul Maisfield, UK Chief Country Officer at ADIB, said.
He said the transaction met several of the bank’s financing criteria, including a strategic location, a long-standing occupier, strong sustainability credentials and secure inflation-linked income.
ADIB said sustained demand for logistics space and the constrained availability of prime properties continued to support rental growth in the sector.
Ahmed Matar, Chief Investment Officer at Blacksand, said the transaction strengthened the company’s relationship with ADIB and reflected confidence in its investment strategy and execution capabilities.
“The acquisition of this high-quality logistics asset aligns with our long-term investment approach of acquiring resilient, income-generating real estate properties backed by strong tenant covenants, sustainable cash flows, and attractive growth prospects,” Matar said.
He said ADIB had established a track record in UK commercial real estate financing through its London office, covering logistics, hospitality, offices, living-sector and mixed-use properties.
Blacksand, established in 2016, invests in income-generating commercial real estate assets across the UK.