ADNOC and Apollo-led Consortium Enter Into $5.5 Billion Real Estate Investment Partnership
Posted on 09/02/2020
Apollo Global Management Inc. and its subsidiaries led a group of investors to buy a 49% stake in Abu Dhabi Property Leasing Holding Company RSC Limited, a unit of the Abu Dhabi National Oil Company (ADNOC). ADNOC will retain the other 51% in Abu Dhabi Property Leasing Holding Company. According to the press release, “Notably, the transaction included no financing, and was placed entirely with insurance and pension fund investors that focus on long-term and high-quality investments. ADNOC will retain a 51% majority stake, maintaining full ownership and control over the select real estate and social infrastructure assets and responsibility for all operations and maintenance. ADPLHC holds the long-term leasehold interests underpinned by the sizeable, diversified portfolio of assets located across the Emirate of Abu Dhabi. The transaction will result in upfront proceeds of $2.7 billion to ADNOC and is expected to close before year-end, subject to customary closing conditions and regulatory approvals.”
The underlying real estate portfolio is valued at US$ 5.5 billion and the strategic investment will leverage the rental income streams from select ADNOC real estate assets under a 24-year master lease agreement.
Advisors
HSBC acted as financial advisor to ADNOC while Moelis & Company acted as an independent financial advisor to ADNOC.
Keywords: Apollo Management, HSBC Holdings plc.
