Masdar launches UAE’s first sustainable real estate investment trust
REIT, with a valuation of up to Dh1b, will start with four commercial properties
Abu Dhabi: Masdar, a subsidiary of Mubadala Investment Company on Wednesday said it is launching the UAE’s first green sustainable real estate investment trust (REIT) at a valuation reaching between Dh950 million and Dh1 billion.
Launched at the Abu Dhabi Sustainability Week, REIT will be located at Abu Dhabi Global Market (ADGM) and will initially include four commercial properties located within Masdar City. REIT will be launched as a Qualified Investor Fund according to Masdar, open to market counterparties and select clients by private placement.
“This REIT is a significant milestone for green investment in the region, and demonstrates Masdar’s leadership in sustainable development,” said Mohamed Jameel Al Ramahi, chief executive officer of Masdar.
“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,” he added.
Al Ramahi said that with so many investors looking to put their money into green initiatives, that the launching of REIT was only natural to meet that demand.
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.
“Investors are increasingly looking for responsible investments and are evaluating companies based on specific environmental, social and governance practices criteria.
“The REIT will contribute to the development and strength of Abu Dhabi’s real-estate sector and bring in greater investment from domestic and international investors that want to make a real difference,” he added.
Richard Teng, chief executive officer of the ADGM Financial Services Regulatory Authority, said the group was looking forward to working with Masdar on REIT.
“We are pleased to be facilitating this landmark REIT and commend Masdar’s efforts towards the progression of the UAE’s sustainability agenda.
“ADGM offers the ideal environment in that it combines a forward-thinking REIT regime, which was developed in response to market demand, with a strong focus on sustainable finance — an effort that ADGM has been spearheading in the region,” he added.
Masdar has been advancing the commercialisation and deployment of renewable energy, sustainable urban development and clean technologies to address global sustainability challenges since 2006, and is currently active in more than 30 countries.