Abu Dhabi - 30 May, 2024: Abu Dhabi Islamic Bank (ADIB), a prominent Islamic financial institution based in Abu Dhabi, has announced a new finance facility for Hallmark Estates. This facility will refinance The Stay Club North Acton, a top-tier 270-unit residential co-living scheme located in North Acton, West London.

The Stay Club North Acton has maintained a 100% occupancy rate, demonstrating the strong tenant demand and limited supply in the residential market. The property, which boasts an EPC rating of "A", offers a range of amenities including a gym, laundry facilities, and concierge services, ensuring a high standard of living for its residents.

This deal signifies the second phase of the project, with ADIB financing the initial phase, which comprised 343 units, in June 2023.

Paul Maisfield, UK Chief Country Officer at ADIB, commented on the deal, "Despite challenging market conditions, we continue to offer selective Islamic structured financing solutions to our clients, facilitating both refinancing and new acquisitions. These achievements occur amidst a challenging UK Commercial Real Estate market, which has seen significant correction in capital values over the last 18 months due to a higher rate environment, impacting investment activity."

Maisfield further added, "There is a strong emphasis on the sustainability and growth prospects of rental income, to drive returns and service debt. Consequently, rigorous due diligence on asset quality, ESG credentials, and sub-sector supply and demand dynamics is paramount. We have observed strong investor demand for the ‘Living Sectors,’ particularly high-quality purpose-built student accommodation (PBSA), build-to-rent (BTR) and co-Living assets, which score favourably on the above criteria fuelling robust rental income growth."

With a strong track record in offering bespoke and competitive Sharia-compliant property financing solutions for its clients in the UK, ADIB has closed senior financing transactions of over AED 3.5 billion (£750 million) in the last 5 years. The bank’s London-based team offers financing support and advisory services for GCC clients looking for commercial and residential property investments across the UK.

Recent deals closed by ADIB in the ‘Living Sectors’ include structured financing a 300-unit PBSA building in Kingston upon Thames, a 90-unit PBSA building in Manchester and a portfolio of residential assets in Manchester comprising over 160 apartments.