UAE oil firm ADNOC gets $900m investment in property unit

UAE oil firm ADNOC gets $900m investment in property unit

The biggest oil producer in the 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, according to a statement from the government-owned energy company.

ADNOC, which pumps most of the oil in the UAE, will retain control over the property after the transaction, it said.

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.

Diversification drive

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 Tuesday will "unlock and drive incremental value from our unique energy infrastructure and real estate asset base,“ ADNOC chief executive officer Sultan Al Jaber said.

Abu Dhabi Pension Fund will take