The Abu Dhabi Pension Fund (ADPF) has spent US$900 million to acquire a minority stake in a real estate firm partly owned by the state-run energy company, Abu Dhabi National Oil Company (Adnoc).
Under the terms of the transaction, the ADPF will own 31% of Abu Dhabi Energy Real Estate Company, a property vehicle created to hold Adnoc’s real estate investments.
The deal with the pension fund comes after Adnoc partnered with a consortium led by US-based alternative investment firm, Apollo Global Asset Management, in September to set up Abu Dhabi Property Leasing Holding Company (ADPLHC).
According to Adnoc, the partnership is designed to generate rental income from its “non-oil and gas strategic infrastructure to redeploy into its core business and strategic growth projects”.
The underlying real estate portfolio managed via ADPLHC is valued at $5.5 billion with the Apollo consortium holding a 49% share.
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