A BUSINESS park in Christchurch which is home to an aerospace and defence giant is set to be acquired for almost £29million by a United Arab Emirates-based buyer.

The Grange Road Business Park, which features 15 buildings all currently let to BAE Systems, is due to become the property of the private overseas purchaser.

Built in 2002, the 150,191 square foot business park is on a lease until 2031 to the multinational defence, security, and aerospace company.

The acquisition was supported by major financial backing from Abu Dhabi Islamic Bank (ADIB), which contributed around £18.9million to buy the site from Trinova Real Estate and Morood Investment Company.

Paul Maisfield, head of UK real estate at ADIB, said: "We are delighted to have supported our UAE-based client with a tailored financing solution to acquire an income-producing, high-quality asset in the UK offering long term secure income.

"The continued weakness of sterling against the dollar makes UK real estate an attractive proposition for investors in the Middle East seeking to diversify their portfolios.

"The primary challenge facing our clients is the very competitive nature of the UK commercial real estate market where we have witnessed a polarisation of both investor and financing appetite towards sectors and assets offering long dated and secure rental cash flows which have been more insulated from the effects of the pandemic. ADIB has a strong track record advising clients in the Gulf on the dynamics of the UK property market, and we look forward to continue guiding them to opportunities which meet their investment objectives."

A statement from ADIB said the UAE client, who has not been named, will obtain a cash on cash return of eight per cent.

The bank has a history of supporting investment in UK commercial property in recent years, including in London, Bristol, Leeds and Manchester.

London-based Trowers & Hamlins LLP advised Trinova Real Estate and Morood Investment Company on the sale of the business park.

The firm advised on all English law aspects of the sale, including providing corporate, tax and property advice. Trowers said the transaction was particularly complex as it involved the factoring in of the buyer's Islamic financing and the seller's outgoing conventional financing.

Ayda Habboush, corporate partner at Trowers who led the team, said: "We have thoroughly enjoyed acting for Trinova on the sale of this high value asset. It was a pleasure to have advised on the second highly successful full-life cycle deal together with Trinova for this particular separate account mandate, particularly in this unprecedented year."