UAE’s leading Islamic financial institution, Abu Dhabi Islamic Bank (ADIB) has provided structured Islamic financing to Rasmala Long Income Fund to support its acquisition of a supermarket investment in the UK.
The property, which was constructed in 2012, has a total area of 100,365 square feet and is leased to Tesco Stores Limited (the UK’s largest supermarket chain) on a 25-year full repairing and insuring lease with 15.8 years remaining (with no tenant break options) at a rate of $2.06 million per annum which is subject to 5 yearly index-linked upwards only rent reviews.
“We are delighted to have supported Rasmala on their latest transaction. There are clear synergies with our financing product and the objectives of the Long Income Fund to generate income and capital growth by investing in a Sharia-compliant manner into a diversified portfolio of real estate assets benefitting from secure income derived from long leases. The UK grocery market has demonstrated strong resilience during the pandemic providing a secure investment alternative for our clients looking for long-term income security, particularly at a time when the risk appetite has faded in the face of an economic downturn. We are looking forward to continuing to support Rasmala in the execution of their UK commercial real estate investment strategy.”
“Tesco superstore is an excellent addition to Rasmala’s European real estate portfolio, taking our real estate AUMs to over $1 billion. We are delighted to partner with ADIB and look forward to working with them on expanding our international real estate portfolio,” noted Mr. Eric Swats, Senior Executive Officer of Rasmala.
ADIB has a proven track record of providing tailored and competitive Sharia-compliant property financing solutions for its clients, having built a portfolio of over $544 million in financing assets in the UK over the last three years.
Rasmala Long Income Fund
Established in 2018, Rasmala Long Income Fund has a diversified portfolio of real estate assets covering the UK, Europe, and North America with a current Net Asset Value of over $250 million. The fund is managed by Rasmala Investment Bank Limited (RIBL) which is regulated by the Dubai Financial Services Authority (DFSA).