Strategic View: Emirates NBD and Abu Dhabi Islamic Bank (ADIB) have anchored a £140 million club deal, splitting it 50/50. The financing is for Paddington Citi View, a prime London student housing asset. This deal highlights the strong appetite of Middle Eastern capital for UK real estate, particularly in the resilient PBSA sector.
Full story: Middle Eastern capital continues its “flight to quality,” and London’s student housing is a prime destination. In a major show of confidence, two of the UAE’s largest banks, Emirates NBD and ADIB, have formed a potent club. They have jointly provided £140 million in senior financing for a key London PBSA* asset, Paddington Citi View.
This is a classic club deal, with both banks taking an equal 50% share. This 50/50 split is significant. It shows a deep alignment and a desire to deploy large, equal tickets into stable, income-producing assets. By teaming up, they can finance a £140M deal with the ease of a £70M transaction, sharing both the diligence and the exposure.
The asset itself is the main character. The UK’s PBSA sector is a safe haven for global capital. Knight Frank’s Q1 2025 data showed that £3.3 billion has already flowed into the sector this year, a massive jump from 2024. The fundamentals are ironclad: a chronic undersupply of beds, rising student numbers, and long-term, inflation-linked income.
For the UAE banks, this deal is a strategic masterstroke. It deploys a significant amount of capital into a sterling-denominated asset, diversifying their portfolios away from the Gulf. It also solidifies their position as key financiers for the London real estate market. This club deal is a strong signal that GCC capital sees long-term value in the UK’s “living” sectors.
*PBSA: Purpose-Built Student Accommodation.
Summary: This £140M deal, perfectly split by Emirates NBD and ADIB, is a clear signal of GCC banks’ confidence in UK student housing. It matters because it demonstrates how Middle Eastern capital is using club deals to deploy significant funds into stable, income-generating assets in mature Western markets, bypassing market volatility.
Source: Finance Middle East
