In December 2024, Emirates NBD led the successful closure of a £140m senior financing transaction for the Paddington Citi View purpose-built student accommodation (PBSA) scheme in central London, in collaboration with Abu Dhabi Islamic Bank (ADIB).
Paddington Citi View comprises 353 premium bedrooms with amenities in a high-demand area just 100 metres from London’s Paddington Station.
Formerly known as Lillian Pension Hall, the building 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.
“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.”
Raj Sehgal, Managing Director, Union Property
The UK’s PBSA market continues to attract significant interest from global investors. According to Knight Frank, approximately £840m was invested in the sector during Q3 2024 across 15 deals, with a year-to-date total of £3.3bn, surpassing the same period last year by £1.3bn. This transaction volume accounts for 46% of global capital flows into PBSA assets in 2024.
“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.”
Carlo De Vos, Head of Corporate & Institutional Banking, Emirates NBD
ADIB has a strong presence in the UK living sectors after recently closing financing for other assets, including a 300-unit PBSA scheme in Kingston upon Thames, a 90-unit PBSA scheme in Manchester, a 613-unit co-living development in North Acton, and a portfolio of residential assets comprising over 160 apartments in Manchester.
“We are excited to have closed this landmark deal alongside Union and our partners at Emirates NBD.
“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.”
Paul Maisfield, UK Chief Country Officer, ADIB
Legal advisory for Emirates NBD was provided by Addleshaw Goddard LLP, while ADIB and Union Property were advised by Foot Anstey LLP and Muckle LLP, respectively.
