ADIC-UBS eyes $600m for infrastructure projects

Abu Dhabi: The chief executive officer of ADIC-UBS Investment Limited said on Monday the joint venture is raising up to $600 million (Dh2,205 million) for investments in infrastructure projects in the Middle East and North Africa (Mena) region and Turkey.

"The fund is now open for subscription. The minimum amount is $10 million," Mark Thompson told reporters in the capital on the sidelines of the Abu Dhabi Conference-2008.

"The first close of the fund will be early next year, by which time we expect to raise $300 million, while the final close will be towards the end of 2009," he said.

"We are targeting investors from the GCC, Mena, Europe and the US," Thompson said. The fund had already received "soft commitments" of about $250 million, he said.

In February, the Abu Dhabi Investment Company (ADIC) joined hands with UBS Global Asset Management, one of the world's leading asset management firms, to form a 50:50 joint venture to develop, promote and manage infrastructure investment funds focused on the Mena region. ADIC's equity base as of the end of 2007 was Dh2.2 billion.

Thompson said the global liquidity crunch had slowed down investments worldwide but "infrastructure as an asset class is a lot more stable."

He said ADIC-UBS Investment currently has $70 million in equity investments. These include an airport project in Jordan and a district cooling project in the UAE.

On ADIC-UBS Investment's future plans, Thompson said the two sides were looking to acquire an equity stake in the Abu Dhabi Roads Public Private Partnership and getting into a health-care project, also in the capital.

The proposed $2.5 billion, 325-kilometre road project is a venture of the Department of Transport - Abu Dhabi.

The road will run from Abu Dhabi city right up to the UAE's border with Saudi Arabia. "The winning contractor for the project will be selected sometime next year, after all the bids received have been evaluated," he said.