Aldar joins Mubadala and Ares to invest in Europe real estate

Reuters

Abu Dhabi-listed Aldar Properties has partnered with Mubadala Investment Company (Mubadala) and Ares Management Corporation (Ares) to invest $1 billion through a private credit fund in the UK and Europe’s real estate market.

Mubadala will hold a 50 percent stake in the new platform, while Aldar will own 30 percent. Ares will hold the remaining 20 percent, the companies said in a joint statement.

The investment horizon is over the next three to five years.

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“Mubadala has strong and strategic relationships with both Ares and Aldar, and this new platform leverages the collective strengths of each party to invest in the private real estate credit market in the United Kingdom and Europe,” stated Omar Eraiqaat, deputy CEO of disruptive investments at Mubadala.

Aldar also plans to invest $100 million into the existing Ares European Real Estate Debt strategy, which Mubadala and Ares launched in 2021.

Private credit is an increasingly important element of real estate finance in mature markets, stated Talal Al Dhiyebi, Group CEO of Aldar.

“With the rising prevalence of non-bank lending, as credit conditions tighten and stricter capital requirements are implemented, we see a substantial opportunity for Aldar as a strategic real estate investor.”

The three companies expect the strategy to expand to $2 billion over time. Including anticipated leverage, the total available capital for the strategy is forecast to exceed $5 billion.

Earlier this month, Aldar acquired London-based developer London Square in a deal worth AED1.07 billion ($291.4 million), its first acquisition outside the Mena region.