Abu Dhabi SWF forms real estate venture with Pramerica

Mubadala, the Abu Dhabi sovereign wealth fund, is to step up its real estate investment programme via a joint venture with Pramerica Real Estate Investors. Mubadala Pramerica Real Estate Investors will initially focus on investing in Abu Dhabi and the Middle East but is expected to evolve into a more international platform in time.

Mubadala has teamed up with Pramerica Real Estate Investors, the real estate investment management business of Prudential Finance, to invest in real estate assets in Abu Dhabi and wider afield.

The multi-sector Abu Dhabi sovereign wealth fund, set up in 2002 to form “mutually beneficial” partnerships with leading international companies, said in a statement that it is to use the platform to initially fund real estate schemes in Abu Dhabi.

It is expected to invest in accordance with Abu Dhabi’s Economic Vision 2030 plan, a state-formed blueprint for economic advancement. One area in which the venture will help the state to realise its goals is to invest in its affordable housing sector.

The state expects the population of Abu Dhabi to double over the next 20 years to more than three million people.

In time, the venture, named Mubadala Pramerica Real Estate Investors, will form investment structures open to US, European, Asian and Middle East institutional, high net worth and family investors that will invest on a more global scale.

Mubadala’s real estate division has already forged ventures with operators in the hospitality sector such as Rosewood Hotels & Resorts and MGM Grand. In addition, it owns 50 percent of luxury hotel operator Viceroy Hotel Group.

Waleed al Muhairi, chief operating officer at Mubadala, said of the tie-up: “This is a compelling prospect for investors that want to participate in the current and future growth of the region.”

Allen Smith, chief executive officer of Pramerica Real Estate Investors, added: “This partnership expands our commitment to this region.”