Abu Dhabi sovereign wealth fund Mubadala expects to increase its spending to about AED 60 billion (€11.3 billion; $16.3 billion) in 2011, Bloomberg reported having seen a bond prospectus.
The report said ‘capital contributions of as much as AED 37.8 billion has been approved by the government for 2011'. According to the prospectus, Mubadala invested an average AED 16.4 billion over the past three years.
Other than real estate, the fund expects to invest in sectors including oil and gas and public-private partnership projects as well as on its Advance Technology Investment Company, its commercial finance joint venture with GE Capital, Mubadala GE Capital, and Masdar, its renewable energy company.
Bloomberg said Mubadala had arranged a series of meetings to discuss possible investments starting last week in London and moving back to the United Arab Emirates this week.
Mubadala was launched in 2002 to form mutually beneficial partnerships with leading global businesses. I has also made some high profile investments such as a stake in New York-based private equity firm, The Carlyle Group. Mubdala purchased 9.35 percent of Carlyle last December in a deal which also meant Mubadala would invest up to $600 million in Carlyle managed funds.
Mubadala has several tie-ups with real estate investing entities, either as a strategic investor or a joint venture partner too. 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.
In March, Mubadala bought out Chicago-based John Buck Company from a joint venture business formed in 2008, called John Buck International, to develop commercial real estate schemes in the emirate.