Mubadala Real Estate & Infrastructure, a unit of Abu Dhabi’s investment fund, is eyeing the United States, Europe and emerging markets to invest in property as it exits developing real estate in its home market, a company executive said.
“We made a conscious shift in strategy where we don’t want to be a developer and compete with property developers. We will focus more on being a real estate investor as part of a new strategy,” Ali Eid Almheiri, executive director of Mubadala Real Estate, said.
A new strategy that will be in place by next year will indicate how much capital the company will invest, he said.
“We’re looking at the US, also Europe – strong, A-class cities. Then we will expand to emerging markets,” he said, adding they will deploy capital in the UAE and internationally. Mubadala is the single largest shareholder in local developer Aldar Properties with a holding of 19.15 per cent.
Abu Dhabi’s two biggest property firms, Aldar and Sorouh Real Estate, agreed on a merger in January in an attempt to revive the emirate’s battered real estate sector, creating a business with US$13 billion in assets.
The property market in the capital of the United Arab Emirates is yet to fully recover from the downturn that began in 2008.
“I think the property market is recovering. While it may not be recovering at the same pace that it went down, we see some recovery,” said Almheiri.
“We see steady growth in people buying homes. Mortgage rates are low, so this motivates people to buy property. We are not out of the woods yet but people are becoming more comfortable,” he said.
Source by mubadala.com
About Mubadala Real Estate
In 2002, Mubadala – the Arabic word for ‘exchange’ – was established by the Government of Abu Dhabi as a principal agent in the diversification of Abu Dhabi’s economy. His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is Chairman of the Board of Directors.
Mubadala is mandated to strengthen Abu Dhabi’s growth potential, and to help the Government meet its socioeconomic targets. While the company’s investments are designed to generate sustainable profits over the long-term, they also deliver strong social returns to Abu Dhabi and the United Arab Emirates.
Focused on investment and development across multiple sectors, Mubadala’s portfolio is valued at more than US $55 billion. Mubadala is an active investor in sectors and geographies that hold exciting potential and tangible returns, working in partnership with a number of world-class organizations.
The Mubadala Story (Video)
About Abu Dhabi
- The Emirate of Abu Dhabi has a population of 2 million
- Abu Dhabi holds 9% of the world’s oil reserves
Real Estate Assets
- Abu Dhabi-based Al Maabar is an overseas development company backed by five of the Emirate’s property and investment companies, including Mubadala.
- Modeled on the world’s best Central Business Districts, Al Maryah Island is a business, leisure and entertainment hub designed to meet Abu Dhabi’s long-term commercial and community needs.
- Iskandar Holding was set up by Mubadala and other shareholders to contribute to the ambitious plan to regenerate the Iskandar region, at the tip of Malaysia, by capitalizing on its strategic location, midway between the Gulf and Japan, and building a dynamic, world-class metropolis.
- Founded in 2007 and based in Abu Dhabi, PF Emirates Interiors is a joint venture between Mubadala and Poltrona Frau Group, a leading European high-end furniture and interiors company.
- Rosewood Abu Dhabi is a luxury business hotel situated on Al Maryah Island at the heart of the city’s new Central Business District (CBD) offering views of the Gulf and the Abu Dhabi skyline.
- Sowwah Square is a 450,000 sqm flagship office, retail and hotel development at the heart of Abu Dhabi’s new Central Business District (CBD) on Al Maryah Island.
- Mubadala owns 50 per cent of the Los Angeles-based Viceroy Hotel Group, which specializes in one-of-a-kind lifestyle experiences in sought-after destinations.
- The luxury Viceroy Maldives resort is part of the Los Angeles-based Viceroy Hotel Group, in which Mubadala holds 50 per cent stake.
- Zayed Sports City was built to fulfil the vision of the late Sheikh Zayed bin Sultan Al Nahyan, the UAE’s founding father and first President.