The Abu Dhabi National Oil Company, ADNOC, has entered into a long-term partnership agreement with an investment consortium led by the New York Stock Exchange-listed company, Apollo Global Management, which is one of the largest alternative investment management companies. In the world, to invest in ADNOC real estate assets amounting to 20 billion dirhams / $ 5.5 billion / .
According to the Emirates News Agency, this partnership allows ADNOC to benefit from the rental returns of a group of its real estate assets, under a lease agreement for a maximum period of 24 years. ADNOC will leverage the significant value of a group of its non-core real estate assets to attract new global capital to reinvest in support of strategic growth projects and initiatives in its core business in the oil and gas sector.
ADNOC has identified a group of its real estate assets and placed them under the umbrella of the Abu Dhabi Real Estate Leasing Holding Company Limited RSC / ADPLHC / its subsidiary which owns long-term lease shares in the A large variety of ADNOC Real Estate's assets in Abu Dhabi.
and through negotiation with international investors, this group of real estate was valued at 20 billion dirhams, and it was agreed that the investment alliance led by Apollo would acquire the 49 share % In ADPLHC, in one of the largest real estate deals in the region. ADNOC will retain the majority stake of 51%, as well as full ownership of its real estate assets and the right to control and manage operations, operation and maintenance.
ADNOC will receive immediate returns of 10 billion dirhams / $ 2.7 billion / under this transaction, which is expected to be completed in the fourth quarter of 2020 after the acquisition. On the regulatory approvals and fulfillment of the required conditions.
On this occasion, His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and CEO of ADNOC and its Group of Companies said: In line with the directives of the wise leadership, ADNOC is keen to establish distinguished partnerships. It maximizes the value of its asset portfolio by attracting smart and innovative strategic investments.
Today we are pleased to sign this agreement with Apollo Global Management, which is one of the largest alternative investment management companies in the world, to benefit from their vast experience in real estate asset management and a better application. Global standards in real estate management and raising cost efficiency in our real estate assets portfolio.
His Excellency added: This partnership provides ADNOC with cash from real estate assets not linked to its core business to reinvest in supporting and financing strategic growth projects and initiatives in its core oil and gas businesses.
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