The UAE’s Energy Giant ADNOCs does a $5.5bn real estate deal with Apollo Global Management

The UAE’s Dubai backed Energy giant ADNOCs is all in pursuit to deal with one of the territories largest real estate transactions via a 49% stake in an association led by Apollo global Management for the energy giant’s property leasing unit. The aggregated net worth of the deal is valued at $5.5 Billion.

The first of its kind initiative alongside Apollo global Management as well as ample support from their subsidiaries are aimed in the long run investment has received a go ahead as they form the one of the global major alternative investment managers, and a group of institutional investors.

This Wednesday, it was officially announced by ADNOC (Abu Dhabi National Oil Company) to have entered in for a $5.5 Billion real estate investment partnership alongside an association led by Apollo Global Management’s institutional investors for an acquisition of a 49 percent stake in Abu Dhabi Property Leasing Holding Company RSC Limited (henceforth referred to as “ADPLHC”), a wholly owned affiliate of ADNOC.

The statement further added that the energy major ADNOC will hold a 51 percent majority stake, thereby preserving the ownership vested wholly, as well as tight control over selected real estate properties as well as social infrastructural assets, last but not the least accountability for every single operations as well as maintenance carried forward in the long or short time period.

The state-run Oil and Energy major ADNOC, of the Abu-Dhabi in UAE, further added to the official statement that all deals and transactions would further result in the upfront proceeds at an aggregated worth of $2.7 billion and that is anticipated to cease before the year-end. Further to it these transactions notably, will be inclusive of no financing, placed wholly under the insurance and pension fund investors that is mainly aimed in terms of a long-term profitable growth as well as huge-quality led investments.

The ADNOC further stated that “This acquisition between the two giants would prove hugely beneficial during the long run as it would in turn unlock latest pools of universal institutional long-term capital as well as aiding in an investment for its fundamental commercial operations and the strategic growth projects. This strategic partnership will as well support Oil major for leveraging rental income streams within selected ADNOCs real estate assets via a 24-year master lease agreement.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, further commented about the deal stating that “they are hugely pleased in order to enter a strategic alliance alongside Apollo and get an edge with their globalized real estate asset management acquaintance for accomplishing an international best practice standards for the overall handling as well as powerful cost efficiencies across their real estate portfolio. The alliance would also allow the oil major ADNOC for unearthing newer, diverse backgrounds as well as producing a significant worth from its non-oil as well as gas strategic infrastructure assets and reinvest into our core business to deliver further growth and produce greater returns.”

He further added that Today’s milestone agreement is a continuation on ADNOC’s particularly successful as well as a desirable infrastructure and a real estate funding program or the unremitting transport on its worth creation strategy. The exorcism or unique, long-term behaviour concerning investment between ADNOC’s underlying real estate property attracted predominantly global insurance plan corporations in accordance with the Apollo-led consortium, reinforcing ADNOC’s role as much a catalyst for responsible and sustained funding yet price advent because Abu Dhabi and the UAE.

“The modern and flexibility ensures ADNOC continues complete possession yet rule upon its real having assets, while similarly strengthening our balance destruction yet allowing for higher metropolis flexibility. This traffic builds about our incredibly successful and continuous track-record on cultivation conduct global institutional headquarters in the UAE and Abu Dhabi, further solidifying the country’s role as a credible or trusted go-to funding vacation spot because of international investors, also into the modern-day remarkable environment.”

For Apollo, the investment affords a special probability to get admission to super rent assets including a superior, risk-adjusted answer profile, and floor between long-term, habitual yet stable money flows beside a subject to that amount is some on the world’s leading yet nearly creditworthy power organizations and a portfolio of assets who is predicted in accordance with gain passionate possession or rental rates. Apollo born as well as structured the transaction, brush upon its potential after navigate complicated global market environments then leveraging knowledge throughout its built-in funding platform, along with actual estate, infrastructure then insurance solutions.

Leon Black, Apollo Chairman, Chief Executive Officer or Founder commented, “We are thrilled in imitation of make investments between ADNOC’s actual real estate portfolio, simultaneously supporting achievement about their skilful plans whilst providing our investors along an enormously alluring risk-reward opportunity. Sourcing as well as structuring a long-term institutional funding about it characteristic is demonstrative about Apollo’s special potential according to embrace complexity then tailor investments in conformity with a company’s unique objectives. In a need the place high-quality, long-dated generate is scarce, its traffic allows our institutional or insurance plan clients, such as Athene, in accordance with participate between a proprietary investment alongside a world-class business enterprise kind of ADNOC.”

Since stating about the expansion about its tie-up as well as funding model or the greater proactive administration regarding its belongings or metropolis among 2017, designed in imitation of unbolt value for the UAE or Abu Dhabi, ADNOC has entered the lend headquarters markets because of the advance time, issuing a $3 billion article backed by using the Abu Dhabi Crude Oil Pipeline; in part floated ADNOC Distribution, the first-ever IPO regarding an ADNOC Group company; or entered in a number of strategical partnerships in its drilling, refining, fertilizer yet buying and selling businesses, amongst others.

ADNOC also recently close landmark investment partnerships with leading global institutional buyers then operators among both its Oil as well as gas pipeline infrastructure. HSBC acted as a monetary guide to ADNOC whilst Moelis & Company acted as much as a self-determining economic guide in conformity with ADNOC.


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