Abu Dhabi’s pension fund, Adnoc sign AED3.3bn real estate deal

Abu Dhabi’s pension fund, Adnoc sign AED3.3bn real estate deal

The Abu Dhabi National Oil Company (Adnoc) announced on Tuesday that it has signed and completed a strategic real estate investment partnership with Abu Dhabi Pension Fund (ADPF). The transaction is ADPF's third successive energy infrastructure and real estate asset partnership with Adnoc and marks ADPF's largest single transaction with Adnoc to date. The ADPF partnership follows the announcement by Adnoc in September 2020 that it had entered into a long-term strategic investment with accounts and entities owned and/or advised by Apollo Global Management Inc and its subsidiaries (collectively Apollo), one of the world's largest alternative investment managers, and a group of institutional investors, for an underlying real estate portfolio valued at $5.5 billion. Under the terms of the agreement, ADPF will acquire a 31 percent holding in Abu Dhabi Energy Real Estate Company “” Sole Proprietorship LLC (ADEREC), the company created to hold Adnoc's 51 percent stake in Abu Dhabi Property Leasing Holding Company RSC Limited (ADPLHC), for a consideration of $900 million. ADPLHC was created to leverage rental income streams from select Adnoc real estate assets under a 24-year master lease agreement. ADPLHC holds long-term leasehold interests underpinned by a sizeable, diversified portfolio of Adnoc real estate assets