Abu Dhabi Investment Authority, one of the world's biggest property investors, is considering changes to its real estate strategy after some of its major holdings suffered during the coronavirus pandemic, people with knowledge of the matter said.
The sovereign wealth fund is reviewing the performance of its property assets following weakness in a number of the shopping malls and office buildings in its portfolio, according to the people, who asked not to be identified because the information is private. Abu Dhabi-based ADIA may consider cutting its exposure to some troubled investments, the people said.
ADIA has shifted in recent years to making more direct property investments and relying less on external managers. The state-owned investor has amassed just under $700 billion in assets, according to estimates from data provider Global SWF, and ADIA has said real estate traditionally accounts for about 5% to 10% of that overall portfolio.
While ADIA will continue to be a major player in property, it could shift its focus for future deals and increase exposure to areas like warehouses, life sciences properties, technology hubs and affordable housing, one of the people said.
Its investments in logistics sites in China through a partnership with industrial real estate investor Prologis are among those that performed well through the downturn, the person said. ADIA bet on the U.K. affordable housing market in 2014 through an investment in Fizzy Living.