The company said that the transaction will result in upfront proceeds of $2.7 billion to Adnoc and is expected to close before year-end.
Abu Dhabi National Oil Company (Adnoc) said on Wednesday it had entered into a $5.5 billion real estate investment partnership with a consortium led by Apollo Global Management Inc.
Adnoc said in a statement that the transaction will result in upfront proceeds of $2.7 billion to Adnoc and is expected to close before year-end.
#ADNOC and Apollo-led consortium enter into $5.5 billion investment partnership. The agreement will yield $2.7 billion in FDI to the #UAE pic.twitter.com/YNaGeDT64f
– ADNOC Group (@AdnocGroup) September 2, 2020
“The strategic investment will leverage the rental income streams from select Adnoc real estate assets under a 24-year master lease agreement,” it added.
Under the real estate transaction, which Adnoc said was one of the region’s largest, private equity firm Apollo led a consortium of institutional investors to acquire a 49 per cent stake in Abu Dhabi Property Leasing Holding Company (Adplhc), which is a wholly owned affiliate of Adnoc.
The Abu Dhabi oil producing company will retain a 51 per cent majority stake, maintaining full ownership and control over the select real estate and social infrastructure assets, it added.
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