Mubadala, US group launch real estate JV
Abu Dhabi, July 14, 2010
Abu Dhabi's Mubadala has tied up with Pramerica Real Estate Investors, the property arm of US-based Prudential Financial, to launch a company that will raise capital from investors to fund real estate projects in the emirate and other global markets.
The JV company to be headquartered in Abu Dhabi, will be called Mubadala Pramerica Real Estate Investors (Mubadala Pramerica REI) and will adhere to Pramerica’s established research-based investment process.
The new venture will sponsor funds that will invest in the region and worldwide, said a top official.
Waleed al Muhairi, chief operating officer for Mubadala, said; 'By partnering with Pramerica, we’re bringing together one of the world’s leading real estate investment companies with our regional market expertise and knowledge.'
'This is a compelling prospect for investors that want to participate in the current and future growth of the region,' he pointed out.
Initially, the company’s strategy will be to create investment opportunities to fund real estate projects in Abu Dhabi.
In time, the company will offer products across the entire spectrum of real estate categories, serving institutional investors in the US, Europe, Asia and the Middle East, along with products tailored for family office and high net worth investors from the region.
“This partnership expands our commitment to this region,” said Allen Smith, chief executive officer of Pramerica Real Estate Investors.
“We’re delighted to be working with Mubadala on this venture, which combines our global presence and investor relationships with Mubadala’s reputation and regional expertise, to give our clients an opportunity to invest in a dynamic, growing economy,” he remarked.
In accordance with Abu Dhabi’s Economic Vision 2030 plan for diversifying its economy and the resulting workforce growth, Abu Dhabi expects to double its residential population over the next twenty years to over three million.
To meet this projected demand, the venture will aim to offer vehicles investing in affordable residential properties for nurses, engineers, technicians, teachers and other mid-income professionals in Abu Dhabi.
“A shortage of bank lending provides a near-term opportunity for investors to fill the gap and provide capital to pre-let projects with secure tenancies. And we anticipate being able to offer sustainable opportunities for years to come, especially given Abu Dhabi’s 2030 Plan,” said Charles Pardoe, managing director of Mubadala Pramerica REI.
“This partnership, with its focus on transparency and corporate responsibility in the region, provides the potential for attractive and reliable returns through conventional and Shariah-compliant investment vehicles,” he added.
In addition to offering investors around the world access to the Mena region, the venture will also give investors in the Middle East access to Pramerica Real Estate Investors’ global strategies outside of the region, said Pardoe.-TradeArabia News Service