VIDEO: Masdar launches UAE's first green real estate investment trust

VIDEO: Masdar launches UAE's first green real estate investment trust
Masdar launches UAE's first green real estate investment trust
Published: 16 January 2020 - 9:55 a.m.

UAE-based renewable energy company Abu Dhabi Future Energy Company (Masdar), which is a subsidiary of Abu Dhabi’s Mubadala Investment Company, has launched a sustainable real estate investment trust (REIT), making it the UAE’s first ‘green’ REIT.

The real estate investment trust – which will have an initial valuation of $258.7m (AED950m) to $272m (AED1bn) – will be established at the Abu Dhabi Global Market (ADGM).

It will include four commercial properties within the sustainable urban community of Masdar City in Abu Dhabi. The properties cover a net leasable area of 57,493m2 have all achieved a rating of 3-Pearls or more on the Abu Dhabi Estidama Pearl Building Rating System.

The private REIT will also be launched as a Qualified Investor Fund, which is open to market counterparties and select clients by private placement.

Masdar’s ‘green’ REIT was officially launched at the Abu Dhabi Sustainability Week (ADSW) by the Minister of State and chairman of the ADGM, Ahmed Ali Al Sayegh; the chief executive officer of Aerospace, Renewables, and ICT at Mubadala Investment Company, Khaled Al Qubaisi; and the CEO of Masdar, Mohamed Jameel Al Ramahi.

Commenting on the launch of the sustainable real estate investment trust, Al Ramahi said: “This REIT is a significant milestone for green investment in the region, and demonstrates Masdar’s leadership in sustainable development. This is the first venture of its kind here, and offers investors an attractive option to invest in sustainable income-generating real estate assets that are helping to contribute to a greater future for all.”

Al Ramahi added: “Investors are increasingly looking for ‘responsible investments’ and are evaluating companies based on specific environmental, social, and governance practices criteria. The REIT will contribute to the development and strength of Abu Dhabi’s real estate sector and bring in greater investment from domestic and international investors that want to make a real difference.”

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