CMS advises ADIB on financing for landmark acquisition in Northern Ireland

International law firm CMS has advised Abu Dhabi Islamic Bank (ADIB), a leading Shariah compliant financial institution, in providing structured Islamic financing for Albilad Capital, an investment arm of Bank Albilad.

The financing will be used by Albilad Capital to acquire the PwC HQ in Merchant Square, Belfast for £87 million. This acquisition represents the largest office transaction in Northern Ireland and the first major property investment in the country by a Middle East investor.

Merchant Square is situated in the heart of the Belfast Business District, providing six ground floor retail units and 225,000 sq ft of Grade A office accommodation spread over nine floors. The property has recently been renovated and extended and is the first privately built commercial building in Northern Ireland to be awarded ‘Excellent' status by BREEAM UK, which assesses new and refurbished buildings according to environmental sustainability standards.

Merchant Square is PwC’s largest office outside of London and will house up to 3,000 employees. 

Shakeel Adli, CMS partner and Head of Islamic Finance, comments: “We are thrilled to have supported long-standing client ADIB on another Shariah compliant structured financing. This deal demonstrates ADIB’s continued confidence in investing in UK regional cities as part of a portfolio diversification strategy, and CMS remains well placed to support clients on the unique challenges posed by Shariah compliant property financing.”

Paul Maisfield, Head of UK Real Estate at ADIB, said: “We are delighted to have supported Albilad Capital on this landmark transaction and, as always, have been very impressed with the support provided by CMS’s experienced Islamic Finance team. The team’s advice was both responsive and commercial, and played a valuable role in the success of this deal.”

The CMS team was led by Shakeel Adli and included Sean Gough, Lily Martin, Melissa Brett and William Reed-Simon.

In 2020, CMS advised ADIB (UK) on three high profile and complex Shariah compliant structured financing deals with a combined value of £85.5 million. These financing solutions facilitated the refinancing of a private Abu Dhabi-based client’s £195 million central London healthcare facility, the financing of a private GCC-based client’s acquisition of an £11.5 million logistics hub in Edinburgh, and the acquisition of the Grange Road Business Park in Christchurch, Dorset, valued at £29.1 million.