UAE Banks Team Up To Fund $178m London Student Real Estate Development

Emirates NBD has led the successful closure of a £140m ($178m) 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.

UAE banks finance UK real estate development

The financed asset, Paddington Citi View, comprises 353 premium bedrooms with modern amenities in a high-demand area just 100m 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 said: “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 and 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 £840m ($1.1bn)  was invested in the sector during Q3 2024 across 15 deals, with a year-to-date total of £3.3bn ($4.2bn), surpassing the same period last year by £1.3bn ($1.7bn).

This transaction volume accounts for 46 per cent 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
• A 90-unit PBSA in Manchester
• 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.