ADNOC enters into $5.5 billion real estate investment partnership

A consortium led by Apollo Global Management acquired a 49% stake in Abu Dhabi Property LEasing Holding Company RSC Limited, a wholly owned affiliate of ADNOC

ADNOC, Sultan al jaber, Apollo, Real estate

The Abu Dhabi National Oil Company (ADNOC) signed a $5.5 billion real estate investment partnership with a consortium led by Apollo Global Management.

Apollo led a consortium of institutional investors in the acquisition of a 49% stake in Abu Dhabi Property Leasing Holding Company RSC Limited (ADPLHC), a wholly owned affiliate of ADNOC. The transaction included no financing, and was placed entirely with insurance and pension fund investors that focus on long-term and high-quality investments. ADNOC will retain a 51% majority stake, maintaining full ownership and control over the select real estate and social infrastructure assets and responsibility for all operations and maintenance.

ADPLHC holds the long-term leasehold interests underpinned by the sizeable, diversified portfolio of assets located across the Emirate of Abu Dhabi. The transaction will result in upfront proceeds of $2.7 billion to ADNOC and is expected to close before year-end, subject to customary closing conditions and regulatory approvals.

“We are pleased to partner with Apollo and leverage their world-class real estate asset management expertise to achieve international best practice standards in managing and driving cost efficiencies across our real estate portfolio," said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO. "This strategic partnership allows ADNOC to unlock and monetize significant value from its non-oil and gas strategic infrastructure assets and reinvest into our core business to deliver further growth and realize greater returns.

“The innovative and flexible deal structure ensures ADNOC maintains full ownership and control over its real estate assets, while further strengthening our balance sheet and allowing for greater capital flexibility. This transaction builds on our highly successful and ongoing track-record of attracting leading global institutional capital into the UAE and Abu Dhabi, further solidifying the country’s position as a credible and trusted go-to investment destination for global investors, even in the current unprecedented environment.”

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Oil & Gas Middle East - September 2020

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