Masdar is giving its green credentials some heavy asset buying support. These buildings come with some of the highest sustainability certifications. Image Credit: Supplied

Dubai: ‘Green’ buildings are getting a lot of interest from a Masdar-backed real estate fund. The Masdar Green REIT - the UAE’s first REIT to invest exclusively in sustainable real estate assets - has bought new property worth Dh934 million. This takes its portfolio value to Dh1.91 billion and with ‘further assets identified for potential future investments’.

The latest acquisitions include two fully occupied, LEED Platinum-rated buildings in Masdar City. These are the head office of Abu Dhabi Quality and Conformity Council and Etihad Airways’ Eco Residences complex. A third asset - the Technology Innovation Institute headquarters - is LEED Gold certified. (All three have a 3 Pearl rating under the Abu Dhabi Estidama Pearl Building Rating System.)

The latest deal follows a $200 million ‘green loan’ secured from FAB in January to help finance the REIT’s growth.

“Climate-resilient development is essential if we are to reach net zero,” said Anthony Taylor, Senior Executive Officer of MCML. “The success and growth of Masdar Green REIT to date shows a credible pathway exists to achieve it. The fact that the REIT has more than doubled in assets in the two years since incorporation underlines the potential for sustainable real estate development in the region.

“It further highlights the broad appeal to investors of Masdar City, as a burgeoning innovation hub and thriving sustainable community.”

A wide green mandate
The fund offers Masdar an opportunity to raise third-party capital from its own real estate portfolio, ‘while ensuring the integrity and sustainability of the real estate assets within Masdar City’. After the latest acquisitions and the green loan drawdown, Masdar Green REIT provides investors access to a portfolio with an occupancy of 98 per cent and an average unexpired lease term of over six years.
The fund’s next phase will target professional investors for cornerstone equity participation as it grows its portfolio with pre-identified sustainable assets, within Masdar City and in the wider UAE.