Abu Dhabi’s ADIA said to review property strategy

ADIA may consider cutting its exposure to some troubled sectors, the sources said

  
Part of Abu Dhabi, UAE with tall buildings and surrounding area viewed from the helicopter. Image used for illustrative purpose.

Part of Abu Dhabi, UAE with tall buildings and surrounding area viewed from the helicopter. Image used for illustrative purpose.

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RIYADH: The Abu Dhabi Investment Authority (ADIA), one of the world’s biggest property investors, is considering changes to its real estate strategy after some of its major holdings suffered during the pandemic, Bloomberg reported citing people with knowledge of the matter.

ADIA may consider cutting its exposure to some troubled sectors, the people said, asking not to be identified.

The state-owned sovereign wealth fund has been making more direct property investments in recent years, and has amassed just under $700 billion in assets, according to estimates from data provider Global SWF.

Real estate traditionally accounts for about 5 percent to 10 percent of that overall portfolio.

ADIA could shift its focus for future deals and increase exposure to areas like warehouses, life sciences properties, technology hubs and affordable housing, one of the people said.

The fund has also invested more in private equity investments, which have outperformed during the pandemic, the people said.

The review is ongoing, and ADIA hasn’t made any final decisions on the changes it will make, Bloomberg reported.

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