Mubadala buys out John Buck from Middle East JV

The Abu Dhabi sovereign wealth fund has bought out Chicago-based John Buck Company from a joint venture platform formed in 2008.

Mubadala, the Abu Dhabi sovereign wealth fund launched in 2002 to form mutually beneficial partnerships with leading global businesses, has bought out the partner of one its real estate joint ventures.

According to reports from the region, Mubadala has bought out Chicago-based real estate company John Buck Company from a joint venture formed in October 2008 called John Buck International. The Abu Dhabi-based joint venture between the two parties was formed to develop commercial real estate schemes in the emirate, shortly after Mubadala acquired a 24.9 percent stake in the US company. Its projects include Sowwah Square, a 570,000-square-metre office, hotel and leisure scheme on Sowwah Island – an island close to the emirate that is expected to become a business hub for the region.

Mubadala revealed its acquisition via an email sent to regional media, in which it said it would integrate John Buck International into its network of companies. In addition, the state fund said it would install Tom Mikus as the company’s chief executive officer. He joins from Saudi Arabia investment house Al Rajhi Group. No price for the stake was divulged.

Mubadala has several tie-ups with real estate investing entities, either as a strategic investor or a joint venture partner. In addition to investments in companies such as Abu Dhabi’s largest real estate company, Aldar Properties, it has formed a partnership with Pramerica Real Estate Investors, the real estate investment management business of Prudential Financial. Formed last year, Mubadala Pramerica Real Estate Investors initially will focus on Middle East investments, but it is expected to evolve into a more international platform in time.