ADNOC has signed and completed a strategic real estate investment partnership with Abu Dhabi Pension Fund (ADPF). ADPF will acquire a 31% holding in Abu Dhabi Energy Real Estate Company – Sole Proprietorship (ADEREC), the company created to hold ADNOC’s 51% stake in Abu Dhabi Property Leasing Holding Company RSC Limited (ADPLHC), for $900 million.
ADPLHC holds long-term leasehold interests underpinned by a sizeable, diversified portfolio of ADNOC real estate assets located across Abu Dhabi. Following the completion of the transaction, ADNOC will hold 69% and ADPF 31% of ADEREC, whilst Apollo and its subsidiaries will continue to directly hold 49% of ADPLHC. ADNOC will maintain full ownership and control over the select real estate and social infrastructure assets, as well as responsibility for all operations and maintenance.
“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,” said ADNOC Group CEO Dr. Sultan Al Jaber. “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.”
This is ADPF’s third successive energy infrastructure and real estate asset partnership with ADNOC and is ADPF’s largest single transaction with ADNOC to date.
“The creation of our real estate investment partnership with Apollo last year enabled ADNOC to monetize its non-oil and gas strategic infrastructure assets and reinvest the proceeds into our core business to deliver further growth,” Jaber said. “The partnership structure continues to ensure that ADNOC maintains full ownership and control over our real estate assets, while further strengthening our balance sheet and allowing for greater capital flexibility.”
Jassim Buatabh, Chairman of the Board of Directors of the Abu Dhabi Pension Fund, said that this agreement is another example of the fruitful cooperation with ADNOC and is part of the fund’s efforts to build strong and diversified investment partnerships.
“We are pleased to expand our partnership with ADNOC, one of the most important national companies that contribute to boosting the economic growth in the Emirate of Abu Dhabi. This agreement aligns with the Fund’s investment strategy, aimed at investing in high-quality diversified portfolios to achieve the maximum possible value,” said Jassim Buatabh.
