CMS advises ADIB on Shariah compliant financing for Sainsbury’s acquisition

International law firm CMS has advised Abu Dhabi Islamic Bank (ADIB), a leading Shariah compliant financial institution, in providing structured Islamic financing of £20m to Urbium Capital Partners (UCP) for their acquisition of a Sainsbury’s store in Edinburgh, Scotland. 

The property comprises an 85,961 sqft prime food store and a 12 pump petrol filling station occupying a 4.6 acre site, constructed in 2013. 

Shakeel Adli, CMS partner and Head of Islamic Finance, comments: “We are delighted to have supported long-standing client ADIB on another successful Shariah compliant structured financing. This is the fourth supermarket investment transaction that ADIB has financed in the UK in the last 12 months, demonstrating the strength and resilience of the UK grocery market, which has seen particularly strong investment growth since the start of the pandemic.” 

Paul Maisfield, Head of UK Real Estate at ADIB, said: “We are delighted to have supported UCP on the acquisition of this high quality asset, which not only provides long term secure income, but also benefits from all of the attributes of a store capable of performing an omnichannel function, thus future proofed against changes in the sector. 

“We want to thank the team at CMS who remain a trusted advisor to ADIB and have once again provided invaluable support throughout the course of the transaction.”

The CMS team consisted of partner Shakeel Adli who led on the financing aspects, supported by Lily Martin and Paul Baird. Edinburgh-based partner Darren Craig led on the Scottish aspects, assisted by Laura King and Claudia Russell.