Abu Dhabi's Masdar Green Real Estate Investment Trust (REIT) has signed a financing deal worth $200 million with First Abu Dhabi Bank (FAB) to fund acquisitions.
FAB, the biggest lender in the UAE, will act as sole mandated lead arranger and bookrunner, green loan coordinator, agent, security agent and account bank for this transaction, according to a statement on Wednesday.
“Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (‘ESG’) practices criteria,” said Abdulla Balalaa, Executive Director, Masdar City and Chairman of the REIT.
He said its fund's portfolio currently includes four commercial properties within Masdar City.
The financing from FAB will help the REIT in building its sustainable real estate portfolio through additional acquisitions of properties in Masdar City. "The proceeds of these acquisitions will in turn assist Masdar City to bring more sustainable real estate assets to market through new sustainable developments and continuing the future expansion of Masdar City,” he added.
The REIT also intends to provide a vehicle through which third-party, sustainable developers can monetize their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors, said Balalaa.
Masdar is wholly owned by Abu Dhabi strategic investor, Mubadala Investment Company. The announcement was made during the 4th Abu Dhabi Sustainable Finance Forum during Abu Dhabi Sustainability Week and comes 12 months after Masdar Green REIT was set up at Abu Dhabi Global Market (ADGM) as a Qualified Investor Fund (QIF).
(Reporting by Brinda Darasha; editing by Seban Scaria)
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