Bank surpasses £1.2bn commercial property finance milestone
Birmingham headquartered Al Rayan Bank has announced that it has now financed more than £1.2bn in Commercial Property Finance (CPF) since 2013.
The bank reached the milestone in 2020 having seen its CPF asset book increase by 20% to more than £600m over the last 12 months after focusing its strategy on residential investment finance.
Its CPF portfolio has more than doubled in value since 2015, with recent deals such as £15m in Harrow-on-the-Hill, £15m in Ashford and Slough, £11m in Newbury and £15m in Borehamwood, helping to contribute towards more than £215m gross drawdowns of CPF business last year.
Maisam Fazal, chief commercial officer at Al Rayan Bank, said: “Against a backdrop of Covid-related macroeconomic disruption, our Commercial Property Finance business has grown significantly in 2020. This is primarily due to the Bank’s focus on large UK residential investment finance agreements between £2.5m and £32m.
“The strong performance of Commercial Property Finance highlights the increasing customer demand for Sharia compliant residential investment finance products, and we’re looking forward to working with our clients as they build more extensive portfolios in the months ahead.
“The Bank finances large UK residential investment properties throughout the UK and our customer base is diverse, with 25% of our commercial property finance customers believed to be non-Muslim.
“The commercial property landscape is fast-paced and there’s plenty of opportunities in the market, especially for residential property investment, which has demonstrated its resilience to both de-urbanisation and the impact of Covid-19.”
