Abu Dhabi Islamic Bank (ADIB) said it has provided structured Islamic financing to Rasmala Long Income Fund to support its acquisition of a supermarket investment in Hattersley, Greater Manchester.
The property, which was constructed in 2012, extends to 100,365 sqft and is leased to Tesco Stores Limited (the UK’s largest supermarket chain) on a 25-year full repairing and insuring lease with 15.8 years remaining (with no tenant break options), at a rent of ₤1.46 million per annum which is subject to 5 yearly index linked upwards only rent reviews.
Rasmala Long Income Fund was established in 2018 and has a diversified portfolio of real estate assets covering the UK, Europe and North America with a current net asset value in excess of $250 million.
The fund is managed by Rasmala Investment Bank Limited (RIBL) which is regulated by the Dubai Financial Services Authority (DFSA).
Paul Maisfield, Head of UK Real Estate at ADIB, said: "We are delighted to have supported Rasmala on their latest transaction. There are clear synergies with our financing product and the objectives of the Long Income Fund to generate income and capital growth by investing in a Sharia compliant manner into a diversified portfolio of real estate assets benefitting from secure income derived from long leases."
"The UK grocery market has demonstrated strong resilience during the pandemic providing a secure investment alternative for our clients looking for long-term income security, particularly at a time when appetite for risk has faded in the face of an economic downturn. We are looking forward to continuing to support Rasmala in the execution of their UK commercial real estate investment strategy," he noted.
Rasmala Senior Executive Officer Eric Swats said: "Tesco superstore is an excellent addition to Rasmala’s European real estate portfolio, taking our real estate AUMs to over $1 billion. We are delighted to partner with ADIB and look forward to working with them on expanding our international real estate portfolio."
ADIB has strong track record in offering bespoke and competitive Sharia-compliant property financing solutions for its clients having built up a portfolio of financing assets in the UK of over AED 2 billion over the last three years.
Eversheds was the advisor for Rasmala Long Income Fund, while ADIB was advised by CMS Cameron McKenna Nabarro Olswang and Collas Crill.