UAE banks Emirates NBD and Abu Dhabi Islamic Bank (ADIB) have closed a GBP140 million senior financing transaction for a prime Purpose-Built Student Accommodation (PBSA) asset in central London.
The 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.
“The 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,” said Carlo De Vos, Head of Corporate & Institutional Banking at Emirates NBD.
The UK’s PBSA market continues to attract significant interest from global investors. Knight Frank said around GBP 840 million was invested in the sector during Q3 2024 across 15 deals, with a year-to-date total of GBP 3.3 billion, surpassing the same period last year by GBP 1.3 billion. This transaction volume accounts for 46% of global capital flows into PBSA assets in 2024.
“The 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,” said Paul Mansfield, UK Chief Country Officer at ADIB.
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.
