ADNOC, ADPF Sign Partnership for Real Estate Investment

ADNOC, ADPF Sign Partnership for Real Estate Investment

The Abu Dhabi National Oil Company (ADNOC), announced that it has signed a partnership with Abu Dhabi Pension Fund (ADPF), for a strategic real estate investment, WAM reported.

Under the terms of the agreement, ADPF will acquire a 31 percent holding in Abu Dhabi Energy Real Estate Company – Sole Proprietorship LLC (ADEREC), the company created to hold ADNOC’s 51 percent stake in Abu Dhabi Property Leasing Holding Company RSC Limited (ADPLHC), for a consideration of $900 million.

This agreement follows the announcement of the long-term strategic investment which ADNOC entered with the entities owned by Apollo Global Management and its subsidiaries for underlaying real estate portfolio estimated at $5.5 billion.

Once the transaction is completed, ADNOC will take 69% of ADEREC and ADPF will hold the remaining stake. While Apollo and its subsidiaries will keep holding its 49% stake in ADPLHC.

ADNOC will maintain its full ownership and control over the select real estate and social infrastructure assets, as well as responsibility for all operations and maintenance.

This transaction is the third successive partnership in energy infrastructure and real estate investment between ADNOC and ADPF.

Commenting on the transaction, Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said, “We are delighted to once again partner with the Abu Dhabi Pension Fund, the custodian and long-term investor of the UAE’s citizens savings. This innovative partnership reinforces ADNOC’s ability to unlock and drive incremental value from our unique energy infrastructure and real estate asset base, while simultaneously creating attractive opportunities for the long-term financial well-being of the United Arab Emirates.

 

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