United Arab Emirates is getting a $900m investment in its property business from a state pension fund. Abu Dhabi Pension Fund is investing in some of Abu Dhabi National Oil Co. (ADNOC)’s real estate assets. ADNOC, which pumps most of the oil in the UAE, will retain control over the property after the transaction. Abu Dhabi, capital of the UAE, has in recent years raised billions of dollars from its energy assets, mainly by selling leasing rights and stakes in some subsidiaries. ADNOC raised $2.7bn in September from a consortium – led by Apollo Global Management – buying into its property-leasing unit. In a separate deal a month later, the Abu Dhabi pension fund and other local investors bought into another ADNOC business set up to hold some pipelines.
Since embarking on a restructuring and diversification strategy in 2016, ADNOC has also raised money by issuing bonds and selling shares in a retail unit. The transaction announced will unlock and drive incremental value from our unique energy infrastructure and real estate asset base. Abu Dhabi Pension Fund will take a 31 per cent stake in a property holding company, with ADNOC owning the rest. The unit in turn holds a 51 per cent stake in the leasing business Adnoc established last year and in which Apollo invested. The business will have a 24-year lease on ADNOC properties. The UAE is the third-largest oil producer in OPEC and ADNOC is boosting investment to expand production capacity.