Abu Dhabi Pension Fund has formed a strategic real estate investment partnership with Abu Dhabi National Oil Co.
The deal will see ADPF acquire a 31% stake in Abu Dhabi Energy Estate Co.-Sole Proprietorship for $900 million. ADNOC will hold 69% of the company, an ADPF news release said.
The company was created to hold ADNOC's 51% stake in Abu Dhabi Property Leasing Holding Co., which comprises long-term leasehold interests underpinned by real estate assets across the emirate. ADNOC announced in September that it had entered into a long-term strategic investment with accounts and entities owned and/or advised by Apollo Global Management and its subsidiaries and other institutional investors. Apollo will continue to directly hold 49% of Abu Dhabi Property Leasing Holding Co.
The agreement is a continuation of ADPF's efforts to build strong and diversified investment partnerships, both locally and internationally, the news release said.
"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 Mohammed Buatabh Al Zaabi, chairman of the board of directors of the ADPF, in the release.
ADPF's assets and real estate allocation were not immediately available.