Abu Dhabi – Mubasher: Aldar Properties, Mubadala Investment Company, and Ares Management plan to jointly invest $1 billion in private real estate credit opportunities in the UK and Europe over the next three to five years.
Under the joint agreement, Mubadala will hold a 50% stake in the new platform, while Aldar and Ares will acquire an equity of 30% and 20%, respectively.
Aldar will invest $100 million into an existing European private real estate credit strategy, which was first established by Mubadala and Ares in 2021.
The Ares European Real Estate Debt strategy is expected to upsize to nearly $2 billion in capital commitments from Mubadala, Aldar, and Ares funds.
Meanwhile, the total available capital for the strategy is forecast to be more than $5 billion.
The announcement followed Aldar’s recent expansion into the UK with the acquisition of London Square, the company’s inaugural direct investment beyond the MENA region.
With a total investment of $400 million, the ADX-listed firm will widen its investments in the region to reinforce its portfolio across the capital structure by entering the private credit space.
Talal Al Dhiyebi, Group CEO of Aldar, said: “The partnership between Mubadala, Ares, and Aldar is wholly unique, blending financial strength, a proven track record, and in-depth knowledge of the real estate sector and asset classes.”
Omar Eraiqaat, Deputy CEO of Disruptive Investments at Mubadala, commented: “This collaborative approach reflects our shared commitment to identifying and capitalising on unique investment opportunities that deliver sustainable, long-term returns.”
Ares is a leading global investment manager with around $49 billion of real estate assets under management (AUM) and more than 250 real estate investment professionals globally.
Last September, Aldar Estates acquired FAB Properties to enhance the property services and create new opportunities to support future growth plans.
In the first nine months (9M) of 2023, Aldar generated net profits valued at AED 3 billion, an annual leap of 41% from AED 2.13 billion.
