ADIB and Emirates NBD in Deal to Refinance Pullman London £121-million, 5‑year, 50/50 Club Financing Facility for Union Property Closed

WHY THIS MATTERS

The £121 million refinancing of the Pullman London St Pancras highlights a significant trend in 2026: the aggressive expansion of Middle Eastern capital into the UK hospitality sector through collaborative “club” financing. This 50/50 deal between Abu Dhabi Islamic Bank (ADIB) and Emirates NBD is their second major joint transaction, signaling a formalized partnership model that allows regional banks to manage risk while deploying larger ticket sizes into prime London real estate. By targeting an asset adjacent to King’s Cross and St Pancras International, the lenders are betting on “connectivity resilience”—the idea that properties situated at the nexus of international (Eurostar) and national rail hubs remain insulated from broader commercial real estate volatility.

This transaction also reflects a shift in lender sentiment toward the “living and hospitality” sectors as offices face ongoing structural challenges. The Pullman brand’s two-decade track record with Accor provides the “long-term income visibility” that Sharia-compliant and institutional lenders now prioritize. In a strengthening but still selective debt environment, this deal proves that “quality-of-income” is the primary currency. For Union Property, securing a five-year facility from two of the UAE’s largest financial institutions provides the capital stability needed to manage a high-value portfolio through the current market cycle.

Abu Dhabi Islamic Bank (ADIB), in collaboration with Emirates NBD, has closed a £121-million, five‑year club financing facility for Union Property to refinance the Pullman London St Pancras. This 50/50 club deal marks the second deal between the two financial institutions, strengthening their presence in the UK real estate market.

The Pullman London St Pancras is a highly regarded four‑star accommodation operated under the Pullman brand by Accor, one of the world’s leading hospitality groups. The property has 312 rooms and benefits from a long‑standing operating and leasing arrangement with Accor spanning more than two decades.

Located in Central London, the property occupies a prime position adjacent to three of the city’s most important transport hubs – St Pancras International, King’s Cross and London Euston stations, providing exceptional connectivity via national rail services, the London Underground and international Eurostar routes. In addition, the property benefits from proximity to a wide range of business, leisure and event‑driven demand generators, underpinning sustained demand from business, leisure and conference travellers.

Raj Sehgal, Managing Director at Union Property, commented: “This transaction strengthens our relationship with Emirates NBD and ADIB, and marks our second major property deal together. Their teams bring strong market insight and have proven to be great partners to Union Property, which is key as we continue to strengthen our portfolio of assets.”

Paul Maisfield, UK Chief Country Officer at ADIB, said: “We’re pleased to have successfully closed this transaction alongside Union Property and our partners at Emirates NBD, marking the second club deal between ADIB and ENBD and our second transaction together with Union Property. This repeat collaboration reflects strong alignment across all parties. ADIB remains focused on financing high‑quality assets with resilient fundamentals and long‑term income visibility. Pullman London St Pancras meets these criteria through its prime central London location, exceptional transport connectivity and long‑standing operation by a globally recognised hospitality brand. Our investment approach continues to prioritise asset quality and sector‑specific supply and demand dynamics, reflecting ADIB’s disciplined and resilient capital allocation strategy.”

Raashed Amin, CEO UK at Emirates NBD, said: “We’re pleased to have led this transaction for Union Property Services with ADIB, marking our second club deal together. It reflects our focus on high-quality real estate in London, working with experienced partners and assets that offer strong long-term fundamentals. The Pullman London St Pancras is a strong example – combining a prime location, excellent connectivity and the backing of a leading global hospitality brand.”

Carlo De Vos, Head of Corporate & Institutional Banking in the UK at Emirates NBD, said: “Our real estate team remains focused on supporting experienced counterparties and well-located assets with a proven track record. We continue to prioritise opportunities in the hotel sector that are backed by strong fundamentals and established operators. This transaction highlights our ability to work closely with partners such as Union Property Services and ADIB to deliver complex financing solutions.”

ADIB has built a strong and well‑established track record in UK commercial real estate financing, supported by a long‑standing on‑the‑ground presence and a disciplined, sector‑focused approach. Through its UK office, the bank has financed a broad range of high‑quality assets across offices, hospitality, logistics, living‑sector and mixed‑use developments, consistently prioritising income durability, tenant quality and structural resilience. This transaction further reinforces ADIB’s position as a trusted long‑term financing partner for regional and international clients investing in the UK market, reflecting its ability to deploy capital selectively across market cycles.

UK hotel investment activity has shown some momentum in 2026, with higher transaction volumes compared to the prior year. Against this backdrop, investor focus continues to centre on well‑located, high‑quality assets with resilient income characteristics and clear sector‑specific supply and demand fundamentals, supported by a gradually strengthening debt environment.

Legal advisory for Emirates NBD was provided by Osborne Clarke, while ADIB and Union Property were advised by Foot Anstey and Muckle LLP, respectively.

FF NEWS TAKE

The ADIB and Emirates NBD partnership is a masterclass in “corridor banking,” where Gulf-based institutions leverage their on-the-ground UK presence to support regional clients moving capital into London. By bypassing traditional UK high-street banks, Union Property is tapping into a liquidity pool that is often more agile and specifically tuned to the requirements of Middle Eastern family offices and corporate entities. The use of a club deal structure rather than a syndicated loan allows for tighter control and a more direct relationship between the borrower and the two lead arrangers.

However, the concentration of investment around the King’s Cross and St Pancras cluster is becoming a “crowded trade.” While the Pullman’s 312 rooms benefit from diverse leisure and business demand, the sheer volume of new hospitality and mixed-use supply in the N1 postcode will test even the most resilient fundamentals. For ADIB and ENBD, the success of this five-year facility will depend on the Pullman’s ability to maintain high RevPAR (Revenue Per Available Room) as global travel patterns continue to normalize. This deal cements the status of UAE banks not just as occasional participants, but as cornerstone lenders in the modernization of London’s strategic infrastructure.