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Abu Dhabi pension fund bets on propertyMENA

Abu Dhabi pension fund bets on property

The Abu Dhabi Pension Fund is going to buy a 31% stake in the Abu Dhabi National Oil Company (ADNOC)’s real estate vehicle, Abu Dhabi Energy Real Estate Company (ADEREC – it’s a lot of acronyms, we know, but stay with us), for $900m.

This agreement will allow all parties involved to further diversify their investment portfolios away from the oil and gas industry. This strategy has been trending amongst government-backed institutions in the region, but there has been an uptick particularly during these challenging pandemic-ridden times, even for solid sectors such as oil and energy. Just last September, ADNOC, for instance, joined forces with a consortium led by Apollo Global Management to invest in a $5.5b underlying real estate portfolio.

why it matters
Oil and gas companies all around the world are working to contain the cost effects of the coronavirus pandemic and the slump in oil prices. This news is also a strategic move by the stakeholders involved to bring in more investors into the UAE real estate industry, which has also been badly hit by COVID-19.