Two UAE banks fund London property buyout

Unsplash.com/Tim Gouw

Emirates NBD and Abu Dhabi Islamic Bank (ADIB) have funded the acquisition of a student accommodation property in London for £140 million ($176.23 million).

The property, Paddington Citi View, has 353 premium bedrooms in a high-demand location, 100 metres from London’s Paddington Station. It is ideally situated for top academic institutions across the city, the Emirati lenders said in a press release.

Formerly known as Lillian Pension Hall, the asset was acquired by UK-based developer Union Property in 2022 from the University of London.

The UK’s purpose-built student accommodation market continues to attract significant interest from global investors.

According to global consultancy Knight Frank, £840 million was invested in the sector during the third quarter. There were 15 deals worth £3.3 billion, surpassing the same period last year by £1.3 billion.

The Paddington Citi View transaction volume accounts for 46 percent of global capital flows into purpose-built student accommodation assets this year.

Abu Dhabi-listed ADIB has recently closed financing for several projects around London and the north west of England.

They include a 613-unit development in North Acton and a 300-unit purpose-built property in Kingston. Other projects are a 90-unit purpose-built student accommodation in Manchester, as well as a portfolio of over 160 residential apartments in the same city.