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ADNOC attracts AED 10bn foreign investments to UAE

ADNOC attracts AED 10bn foreign investments to UAE
The partnership will enable ADNOC to benefit from the assets' rental income

UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC) has reached a long-term strategic agreement with entities owned and/or advised by New York-headquartered Apollo Global Management and its subsidiaries.

Under the agreement, a consortium of institutional investors led by Apollo, one of the world's largest alternative asset managers serving investors, will invest in some of ADNOC's real estate assets worth $5.5 billion, according to a press release on Wednesday.

The partnership will enable ADNOC to benefit from the assets' rental income under a 24-year master lease agreement, explore new pools of global institutional long-term capital, and support its business and strategic growth projects.

In one of the region's largest real estate transactions, the consortium has acquired a 49% stake in  Abu Dhabi Property Leasing Holding Company, a wholly-owned affiliate of ADNOC.

ADNOC will own a 51% majority stake in the company while maintaining full ownership and control over the select real estate and social infrastructure assets as well as responsibility for all operations and maintenance. 

The transaction will result in upfront proceeds of $2.7 billion (AED 10 billion) to ADNOC and is expected to close before year-end.

The UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, Sultan Al Jaber, said: "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."

Meanwhile, Apollo Chairman, CEO, and Founder, Leon Black, remarked: "In a market where high-quality, long-dated yield is scarce, this transaction allows our institutional and insurance clients, including Athene, to participate in a proprietary investment alongside a world-class company like ADNOC."