Two Middle Eastern sovereign wealth funds are among the top five real estate investors in the world.
The Abu Dhabi Investment Authority (ADIA), which has a $62 billion real estate investment portfolio, topped the list, while the Qatar Investment Authority (QIA), with $35 billion in real estate investments, came fifth.
In between ADIA and the QIA were institutional investors in Netherlands (ABP), Germany (Allianz) and France (Axa), according to a research report from Credit Agricole’s IndoSuez Wealth Management and IPE Real Estate.
ADIA’s real estate portfolio, which includes the $2 billion-plus residential Waterline Square development on New York’s Hudson river, represents 7.5% of its total assets under management, said the report. The fund's move into property reflects a trend for Mena-based sovereign investors to embrace a more diversified strategy and reduce their dependency on oil-related wealth.
The QIA’s real estate investments include London skyscrapers such as The Shard and Canary Wharf. In total, Mena-based sovereign wealth funds make up 26% of the largest institutional real estate investors, an increase on previous years, according to the report.
“Emerging market institutional investors have become more prominent real estate investors in the global arena in recent years helped by a growing middle class and wealth in large swathes of the emerging world,” said Victoria Scalogne, senior real estate analyst at Indosuez.
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