ADNOC and Apollo close real estate investment partnership

The Abu Dhabi National Oil Company (ADNOC) announced, that it has closed its $5.5 billion real estate investment partnership with Apollo Global Management and a group of institutional investors.

The closing takes the combined investment in select ADNOC real estate assets by the investor consortium to $2.7 billion.

Under the agreement, the Apollo-led consortium collectively holds a 49 per cent stake in Abu Dhabi Properly Leasing Holding Company RSC Limited (ADPLHC). ADNOC retains a 51 per cent majority stake, maintaining full ownership and control over the select real estate and social infrastructure assets and responsibility for all operations and maintenance.

Commenting on the closing of the transaction, Ahmed Jasim Al Zaabi, Group Chief Financial Officer at ADNOC, said: “The rapid and successful closing of this milestone investment speaks to the high deal certainty ADNOC and Abu Dhabi offer investors and is underlined by the premium quality, unique nature and long-term attractiveness of ADNOC’s underlying real estate assets. In addition to Apollo, ADNOC is proud to welcome for the first time, international insurance companies to our ever-growing partner and investor ecosystem, reinforcing the confidence placed in both ADNOC and the UAE as an investment destination of choice by the global investment community.

“This real estate partnership follows ADNOC’s recent landmark gas pipeline infrastructure transaction and institutional placement of ADNOC Distribution shares, once again demonstrating our ability to efficiently structure and close a mutually value-creating and long-term investment opportunity for our partners and investors, even during the current challenging environment.”

Apollo Co-President and CIO of Credit Jim Zelter, said: “Apollo is pleased to have sourced, structured, underwritten and syndicated this investment in ADNOC’s high-quality real estate portfolio. The firm leveraged all parts of our integrated investment platform, including expertise in direct orginination, real estate and infrastructure, to structure a solution that serves ADNOC’s strategic growth plans and allows investors to access attractive, long-dated yield.”

The quality and unique, long-term nature of this milestone investment into ADNOC’s underlying real estate assets attracted predominantly international insurance companies to the Apollo-led consortium, reinforcing ADNOC’s role as a catalyst for responsible and sustained investment and value creation for Abu Dhabi and the UAE.