UAE's Masdar enters strategic deal with Emirates NBD Asset Management

Partnership follows launch of energy firm's 'green' fund

Abu Dhabi city skyline at twilight, United Arab Emirates. Image used for illustrative purpose.

Abu Dhabi city skyline at twilight, United Arab Emirates. Image used for illustrative purpose.

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Abu Dhabi Future Energy Company (Masdar) has entered a strategic deal with Emirates NBD Asset Management to receive management services for the recently launched green fund.

Masdar, wholly-owned by Abu Dhabi’s Mubadala Investment Company, announced last week its new real estate investment trust (REIT) with an initial valuation of 950 million ($259 million) to 1 billion UAE dirhams.

The “Masdar Green REIT” has been established at the Abu Dhabi Global Market (ADGM) as a qualified investor fund (QIF), offering investors the opportunity to put their money in a portfolio of sustainable real estate assets, which initially include four commercial properties within Masdar City.

With the new agreement, Masdar Capital Management and Emirates NBD Asset Management will able to share their “significant experience and expertise” in sustainable real estate and property asset management.

Two strong brands

“We are delighted to be bringing together two of the UAE’s strongest brand names to work on the Masdar Green REIT, an exciting new investment product for the UAE’s REIT market,” said Steve Corrin, SEO of Emirates NBD Asset Management.

“The initial portfolio has been created with global ESG (environmental, social and governance) principles in mind to offer investors the highest levels of sustainability ratings as well as attractive rental yields in line with investor expectations.”

Masdar also confirmed on Wednesday that its green REIT has already received an approval from ADGM’s Financial Regulatory Authority to begin operations.

The properties under Masdar’s green fund consume approximately 40 percent less electricity and water compared to other buildings in Abu Dhabi.

(Writing by Cleofe Maceda; editing by Seban Scaria)

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