ADNOC to sell 49% in its real estate assets to Apollo
Abu Dhabi National Oil Company (ADNOC) signed a deal with NYC-based Apollo Global Management to invest in ADNOC's real estate assets worth USD5.5bn.
Emirates News Agency reported that ADNOC signed a long-term transaction with an Apollo-led consortium comprising of a number of institutional investors.
Under the transaction, due to be finalized in the 4th quarter of 2020 upon fulfilling regulatory requirements, ADNOC will receive returns worth U.SD2.7bn on the spot.
The transaction will leverage the rental income streams from select ADNOC real estate assets under a 24-year master lease agreement, according to statement released by Emirates News Agency.
ADNOC will sell a 49% stake in Abu Dhabi Property Leasing Holding Company RSC Ltd (ADPLHC), that holds select ADNOC real estate assets, to Apollo Global Management Inc (Apollo)-led institutional investor consortium, for USD 2.7bn, the statement added.
The transaction, considered as region's one of the largest real estate transactions, values ADPLHC at USD 5.5bn. ADNOC shall retain the remaining 51% stake in ADPLHC as well as full ownership, control over its real estate assets, operations and maintenance.
Minister of Industry and Advanced Technologies and CEO of ADNOC Sultan Ahmed El-Gaber said that this partnership will generate cash revenues for the company out of its non-core real estate assets. In return, such revenues will be re-invested through boosting and financing projects and strategic growth initiatives of its core oil and gas operations.
Also, the innovative and flexible restructuring of this partnership will make ADNOC assets available for world capital without relinquishing ownership and control of its real estate assets, he explained.
