CMS advises BLME on acquisition of landmark Glasgow City office property

CMS has advised Bank of London and The Middle East (BLME) and their investors, on the £55m Shariah compliant acquisition of 1 Atlantic Quay in Glasgow, in partnership with Darin Partners. Located in the heart of Glasgow’s financial district, Atlantic Quay 1 is a recently refurbished Grade A prime office investment extending to 121,737 sq ft.

BLME acquired Atlantic Quay 1 from MREFIII, a fund managed by Moorfield Group, marking its first commercial property investment in Glasgow. BLME is an independent UK wholesale Shariah compliant bank and the largest Islamic bank in Europe. It sources and co-invests in commercial real estate opportunities alongside professional investors from the Middle East.

“Atlantic Quay 1 fits within our real estate investment strategy of acquiring income generating assets anchored by investment grade tenants,” said Khalid Alanani, investment manager of BLME Investment Solutions. “The prime location within one of the UK’s most vibrant cities and Scotland’s economic powerhouse will provide our clients with stable income and potential for rental growth and capital appreciation.”

“Atlantic Quay provides our client with long term government income, with the opportunity to drive capital appreciation through asset management,” said Darin Partners CEO David Bell. “We are very confident in the Glasgow occupational market, with tenant demand outstripping the level of supply, which will result in short and medium term rental growth.”

CMS advised BLME on the corporate, banking, real estate and tax aspects of the transaction, with corporate partner Ben Hendry, head of Islamic Finance Shakeel Adli and CMS Edinburgh Managing Partner, Darren Craig leading the team.

Ben Hendry commented, “We are pleased to have been involved in this significant transaction for the UK real estate market. The acquisition reinforces the strength of UK’s regional cities in attracting overseas investment. For this deal, we were able to combine our strong corporate, real estate and banking expertise, with our significant Islamic Finance capabilities.”

Shakeel Adli, added, “Our Islamic Finance practice continues to be involved in market leading transactions and we were honoured to have been asked by BLME to assist them with the acquisition of Atlantic Quay 1.”