Abu Dhabi’s $829 billion wealth fund is pushing deeper into the US, real estate

Abu Dhabi’s $829 billion wealth fund is pushing deeper into the US, real estate

The $829 billion Abu Dhabi Investment Authority is pushing deeper into the US and real estate investments, tapping into opportunities brought on by the pandemic.

After one of its busiest years of dealmaking, the emirate’s biggest sovereign wealth fund has raised its target allocation range for North America to between 45 percent and 60 percent, and expects activity levels for real estate investments to remain high this year and beyond, according to its 2021 annual review released on Thursday.

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“The outlook for real estate investment remains attractive,” ADIA said. “Market fundamentals are well-supported by rising replacement costs on the back of high inflation in labor and construction materials, the delayed supply-chain response, and other disruptions resulting from the pandemic.”

Due to its sheer size, ADIA’s choices can have an impact around the world. It’s already one of the biggest investors in US real estate, and its recent deals include stakes in German railcars, North American energy and Indonesia’s biggest internet firm.

ADIA is among Gulf sovereign wealth funds investing more in the US to capture opportunities arising from the fallout of the pandemic and rising fears of a global recession.

Royal