Dubai: The Abu Dhabi Pension Fund has provided its biggest real estate centered deal to date with ADNOC. It is also the fund’s third deal with Abu Dhabi’s energy giant.
It obeys the declaration by ADNOC in September that it had set foot in a long-term strategic investment with an organization owned by New York provided by Apollo, one the world’s largest alternative investment managers, and a group of institutional investors, for a basic real estate portfolio valued at $5.5 billion.
Network of shareholdings
In terms of the agreement, ADPF will cover a 31 percent holding in Abu Dhabi Energy Real Estate Company – Sole Proprietorship LLC (“ADEREC”), the company built to support ADNOC’s 51 percent stake in Abu Dhabi Property Leasing Holding Company RSC Itd. for $900 million.
ADPLHC was generated to hold rental income streams from select ADNOC real estate benefits under a 24-year master lease agreement. ADPLHC grips long-term lease-hold interests supported by ADNOC’s real estate benefits across Abu Dhabi.
Following the accomplishment of the deal, ADNOC will have 69 percent and ADPF 31 percent of ADEREC, whilst Apollo will keep full ownership and control over the select real estate and social infrastructure benefits, and also the responsibility for all operations and maintenance.