UAE asset manager, Emirates NBD, has been contracted by Masdar, a subsidiary of Abu Dhabi sovereign wealth fund Mubadala, to provide management services for its real estate investment trust (Reit).
The Masdar Green Reit, which claims to be the UAE’s first sustainable real estate fund, will be jointly managed by Emirates NBD and the recently established Masdar Capital Management.
Although the fund was announced in January 2020 it has only now received approval from the Abu Dhabi regulator to begin operations.
The fund has a mandate to only invest in sustainable real estate projects and its portfolio includes four commercial properties within Masdar City, a sustainable urban development project in Abu Dhabi.
According to Masdar, the fund is designed to attract institutional investment that can fund the expansion of the development project.
“The initial portfolio has been created with global ESG principles in mind to offer investors the highest levels of sustainability ratings as well as attractive rental yields in line with investor expectations,” said Steve Corrin, SEO of Emirates NBD Asset Management.
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