ADNOC signs a partnership agreement with "Abu Dhabi Pensions" worth 3.3 billion dirhams
The Abu Dhabi National Oil Company (ADNOC) today announced the signing and completion of a real estate investment partnership agreement with the Abu Dhabi Pension Fund. This deal represents the third partnership of the Abu Dhabi Pension Fund in the field of energy infrastructure and real estate assets and its largest single deal with ADNOC so far.
This partnership with the Abu Dhabi Retirement Fund comes after the conclusion of "ADNOC" in September 2020 a long-term investment agreement with a consortium of a number of investment institutions led by Apollo Global Management "Apollo", one of the largest alternative investment management companies in the world and listed on the New York Stock Exchange under the symbol "NYSE" : APO, "to invest in a segment of ADNOC's real estate portfolio worth 20 billion dirhams" $ 5.5 billion.
Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, CEO of the Abu Dhabi National Oil Company (ADNOC) and its group of companies said: “We are pleased to sign a new partnership agreement with the Abu Dhabi Pension Fund, as the fund is a reliable investor for citizens’ long-term savings .. This step is in line with The directives of the wise leadership to seek smart and quality partnerships that maximize the value of our diverse assets, and this deal confirms ADNOC's ability to enhance and increase the value of its real estate assets and its unique energy infrastructure, while at the same time creating attractive opportunities for sustainable economic development in the UAE. ".
He added, "The strategic partnership that we entered into with" Apollo "last year enabled ADNOC to obtain cash from real estate assets not linked to its core business, to re-invest them in supporting and financing strategic growth projects and initiatives in its main business in the field of oil and gas.
He pointed out that through the innovative structure of this partnership, ADNOC ensures that it retains the right of control and ownership of its real estate assets to support its financial performance and enhance its monetary flexibility.
Under the agreement, in exchange for 3.3 billion dirhams ($ 900 million), the Abu Dhabi Pension Fund will acquire a 31% stake in the Abu Dhabi Real Estate Energy Company, in which ADNOC owns a 69% stake, which was established to own ADNOC's 51% stake in Abu Dhabi Real Estate Leasing Holding Company Ltd. "ADPLHC".
Abu Dhabi Real Estate Leasing Holding Company Ltd. - ADPLHC was established to benefit from the rental returns of a specific group of ADNOC real estate assets, under a lease agreement for a maximum period of 24 years .. Abu Dhabi Real Estate Leasing Holding Company Ltd. owns long-term rental shares in a large portfolio of assets ADNOC Real Estate in the Emirate of Abu Dhabi .. After the completion of the deal, "Apollo" and its subsidiaries will retain a 49% stake in the Abu Dhabi Real Estate Leasing Holding Company Ltd. "ADPLHC" .. and ADNOC will retain the full ownership and control over the specified group of real estate assets and affiliated community infrastructure assets. It has the right to control and administer operations, operation and maintenance.
This new partnership will provide the Abu Dhabi Retirement Fund a new opportunity to invest in premium real estate assets with low-risk returns, and to achieve stable and long-term cash flows.
The real estate asset portfolio is expected to achieve strong occupancy and rental rates.
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