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Fri 31 Jan 2020 12:44 AM

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First REIT launched in the UAE to support 'green' investment

Masdar, a subsidiary of Mubadala Investment Company, has announced the launch of a sustainable real estate investment trust

First REIT launched in the UAE to support 'green' investment

The REIT, which was launched at Abu Dhabi Sustainability Week, will be established at ADGM.

Masdar, a subsidiary of Mubadala Investment Company, has announced the launch of a sustainable real estate investment trust (REIT), the first ‘green’ REIT to be introduced in the UAE.

The REIT will have an initial valuation of between AED950 million ($258.7 million) and AED1 billion.

It will initially include four commercial properties within Masdar City, the sustainable urban community in Abu Dhabi that is focused on low-carbon urban development.

The private REIT will be launched as a Qualified Investor Fund, open to market counterparties and select clients by private placement.

The REIT, which was launched at Abu Dhabi Sustainability Week by Ahmed Ali Al Sayegh, Minister of State and chairman of Abu Dhabi Global Market (ADGM), Khaled Al Qubaisi, CEO of Aerospace, Renewables & ICT at Mubadala Investment Company, and Mohamed Jameel Al Ramahi, CEO of Masdar, will be established at ADGM.

Al Ramahi said: "This REIT is a significant milestone for green investment in the region, and demonstrates Masdar’s leadership in sustainable development. This is the first venture of its kind here, and offers investors an attractive option to invest in sustainable income-generating real-estate assets that are helping to contribute to a greater future for all."

Richard Teng, CEO of the ADGM Financial Services Regulatory Authority, added: "We are pleased to be facilitating this landmark REIT and commend Masdar’s efforts towards the progression of the UAE’s sustainability agenda."

In 2018, Masdar signed the first green revolving credit facility in the Middle East, helping to support its investments in global clean technology and sustainable real estate projects.

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