Mubadala Development Company (Mubadala) and Pramerica Real Estate Investors have agreed to launch a joint venture company that will raise capital from investors to fund and invest in real estate projects in Abu Dhabi and other global markets.
Pramerica Real Estate Investors is the real estate investment and advisory business of U.S.-based Prudential Financial, Inc. (NYSE: PRU).
The company, called Mubadala Pramerica Real Estate Investors (Mubadala Pramerica REI), will be headquartered in Abu Dhabi and will adhere to Pramerica’s established research-based investment process. The venture will sponsor funds that will invest in the region and worldwide.
Waleed al Muhairi, Chief Operating Officer for Mubadala, said; “By partnering with Pramerica, we’re bringing together one of the world’s leading real estate investment companies with our regional market expertise and knowledge. This is a compelling prospect for investors that want to participate in the current and future growth of the region.” Initially, the company’s strategy will be to create investment opportunities to fund real estate projects in Abu Dhabi. In time, the company will offer products across the entire spectrum of real estate categories, serving institutional investors in the U.S., Europe, Asia and the Middle East, along with products tailored for family office and high net worth investors from the region.
“This partnership expands our commitment to this region,” said Allen Smith, CEO of Pramerica Real Estate Investors. “We’re delighted to be working with Mubadala on this venture, which combines our global presence and investor relationships with Mubadala’s reputation and regional expertise, to give our clients an opportunity to invest in a dynamic, growing economy.” In accordance with Abu Dhabi’s Economic Vision 2030 plan for diversifying its economy and the resulting workforce growth, Abu Dhabi expects to double its residential population over the next twenty years to over three million. To meet this projected demand, the venture will aim to offer vehicles investing in affordable residential properties for nurses, engineers, technicians, teachers and other mid-income professionals in Abu Dhabi.
“A shortage of bank lending provides a near-term opportunity for investors to fill the gap and provide capital to pre-let projects with secure tenancies. And we anticipate being able to offer sustainable opportunities for years to come, especially given Abu Dhabi’s 2030 Plan,” said Charles Pardoe, managing director of Mubadala Pramerica REI. “This partnership, with its focus on transparency and corporate responsibility in the region, provides the potential for attractive and reliable returns through conventional and Shariah-compliant investment vehicles.” In addition to offering investors around the world access to the Middle East North Africa region, the venture will also give investors in the Middle East access to Pramerica Real Estate Investors’ global strategies outside of the region.
