Abu Dhabi Pension Fund and ADNOC form real estate partnership

The Abu Dhabi Pension Fund (ADPF) has forged its third successive energy infrastructure and real estate partnership with Abu Dhabi National Oil Company (ADNOC).

According to the agreement, ADPF will pay $900 million for a 31 percent stake in Abu Dhabi Energy Real Estate Company (ADEREC), which was formed to hold ADNOC’s 51 percent stake in Abu Dhabi Property Leasing Holding Co. (ADPLHC).

According to a statement from the companies, ADPLHC was created to leverage rental income streams from select ADNOC real estate assets under a 24-year master-lease agreement. ADPLHC holds long-term leasehold interests underpinned by a sizeable, diversified portfolio of ADNOC real estate assets located across the Emirate of Abu Dhabi.

The transaction marks ADPF’s largest single transaction with ADNOC to date.

“This innovative partnership reinforces ADNOC’s ability to unlock and drive incremental value from our unique energy infrastructure and real estate asset base