Dubai/Abu Dhabi, UAE: Emirates NBD, one of the UAE’s leading financial institutions, has led the successful closure of a £140 million senior financing transaction for a prime Purpose-Built Student Accommodation (PBSA) asset in central London, in collaboration with Abu Dhabi Islamic Bank (ADIB). This 50/50 club deal marks a significant collaboration between the two banks and enhances the UAE’s banking presence in key international markets.

The financed asset, Paddington Citi View, comprises 353 premium bedrooms with modern amenities in a high-demand area just 100 meters from London’s Paddington Station, providing the capital’s student population with exceptional connectivity to top academic institutions across the city. Formerly known as Lillian Pension Hall, the property was acquired by Union Property in 2022 from the University of London. Its location and quality make it a distinguished offering in London’s competitive PBSA market.

Raj Sehgal, Managing Director at Union commented: “Paddington Citi View is a great addition to our portfolio and is perfectly positioned to meet the demand from the city’s student population for premium living options that are close to London’s academic institutions. We are thrilled to have collaborated with ENBD and ADIB on this deal, which has been executed efficiently to support our strategic objectives.”

Carlo De Vos, Head of Corporate & Institutional Banking at Emirates NBD, said: “We are pleased to have supported this debt facility, which underscores our capability to deliver strategic, structured Islamic and conventional financing solutions to international clients. This deal reflects our focus on high-quality assets with stable income potential, and supports our strategy to work with strong counterparties, like Union Property, while expanding our presence in key international markets.”

Paul Maisfield, UK Chief Country Officer at ADIB, said: “We are excited to have closed this landmark deal alongside Union and our partners at ENBD. This structured financing showcases our strong commitment to innovative financing solutions alongside trusted financial partners. In a market where asset values have adjusted notably over the past two years, ADIB remains focused on financing assets with sustainable rental income growth potential. Our criteria for investment prioritise asset quality, ESG credentials, and sector-specific supply and demand factors. Paddington Citi View met all these criteria, reflecting our strategic approach to resilient investments.”

The UK’s PBSA market continues to attract significant interest from global investors. According to Knight Frank, approximately £840 million was invested in the sector during Q3 2024 across 15 deals, with a year-to-date total of £3.3 billion, surpassing the same period last year by £1.3 billion. This transaction volume accounts for 46% of global capital flows into PBSA assets in 2024.

ADIB has a strong track record in the “UK Living Sectors”, recently closing financing for other high-profile assets, including a 613-unit Co-Living project in North Acton, a 300-unit PBSA in Kingston upon Thames, and a 90-unit PBSA in Manchester, as well as a portfolio of residential assets comprising over 160 apartments in Manchester.

Legal advisory for Emirates NBD was provided by Addelshaw Goddard LLP, while ADIB and Union Property were advised by Foot Anstey LLP and Muckle LLP, respectively.

About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region with a presence in 13 countries, serving over 9 million active customers. As at 30th September 2024, total assets were AED 956 billion, (equivalent to approx. USD 260 billion). The Group has operations in the UAE, Egypt, India, Türkiye, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 859 branches and 4,512 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.89 billion. 

Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv, the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.

Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is committed to supporting the UAE’s Year of Sustainability as Principal Banking Partner of COP28 and an early supporter to the Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.

About ADIB

ADIB is a leading bank in the UAE with AED 223 billion in assets. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides Retail, Corporate, Business, Private Banking and Wealth Management Solutions. The bank was established in 1997, and its shares are traded on the Abu Dhabi Securities Exchange (ADX).

ADIB has a strong presence in five strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Qatar, and Iraq.

Named World’s Best Islamic Bank by The Financial Times - The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Emirates airlines, Etihad and Etisalat and a wide range of financing products.

For media information, please visit www.adib.ae or contact:
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Lamia Khaled Hariz                                                    Simon Hailes
Head of Public Affairs                                                 Director of Financial Communications