Adnoc closes $5.5bn real estate deal

The Abu Dhabi National Oil Company (Adnoc) has announced the successful conclusion of a real estate investment deal with a consortium of investors led by US alternative investment manager, Apollo Global Management.

The deal, which was first signed at the beginning of September, could be with as much as US$5.5 billion.

The arrangement will see the consortium, which also includes a number of Apollo subsidiaries and a group of institutional investors, receive rental income from select Adnoc properties over the next 24 years. In return, Adnoc will receive $2.7 billion as an upfront payment.

Adnoc chief executive, Sultan Al Jaber, has described the partnership as an “innovative and flexible deal structure” that ensures Adnoc “maintains full ownership and control over its real estate assets” while also strengthening its balance sheet.

It will also “unlock new pools of global institutional long-term capital” stated Adnoc, which concluded an investment deal worth $20.7 billion involving its gas pipelines earlier this year, making it one of the largest ever energy infrastructure deals.

Adnoc will retain a 51% stake in the real estate assets included in the deal while the consortium will own the remaining 49%.

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