A Bahraini financial institution has emerged as the backer of one of the largest City of London office transactions this year. The acquisition is its first deal in an investment drive into European property.

The deal comes amid a wider renaissance in the City of London investment market following a slump that has wiped about half from values since the peak in 2007. Agents estimate there is as much as £1bn of City deals in solicitors’ hands, driven by cash-rich international buyers looking for bargains.

In the latest deal to complete, Al Salam Bank Bahrain teamed up with Evans Randall, the private equity group, to acquire Milton Gate in the City from UBS for £127m.

The deal is the first for Al Salam Bank in the UK, and is part of a push into Europe in partnership with Evans Randall. The bank is said to have up to £500m in equity to spend, which gives it considerable investment firepower when matched by debt.

Financial Times