The strategic investment will leverage the rental income streams from select ADNOC real estate assets under a 24-year master lease agreement. The investment will unlock new pools of global institutional long-term capital for ADNOC, while supporting investment in its core business and strategic growth projects.
In one of the region’s largest real estate transactions, Apollo led a consortium of institutional investors in the acquisition of a 49% stake in Abu Dhabi Property Leasing Holding Company RSC Limited ("ADPLHC"), a wholly owned subsidiary of ADNOC. Notably, the transaction included no financing, and was placed entirely with insurance and pension fund investors that focus on long-term and high-quality investments. ADNOC will retain a 51% majority stake, maintaining full ownership and control over the select real estate and social infrastructure assets and responsibility for all operations and maintenance. ADPLHC holds the long-term leasehold interests underpinned by the sizeable, diversified portfolio of assets located across the Emirate of Abu Dhabi. The transaction will result in upfront proceeds of US$2.7 billion to ADNOC and is expected to close before year-end, subject to customary closing conditions and regulatory approvals.
The Ashurst team was led by partner Stuart James, supported by senior associate Johnson Lo and associate Rushal Noor, together with specialist partners Sarah Sivyour, Matthew Wood, Michael Neary, Robert Andrews, Tom Cummins and Neil Cuninghame on various aspects of the structure. ADNOC was also advised by Baker & McKenzie on UAE real estate matters, and Apollo was advised by Milbank.
Partner Stuart James commented:
"It was a privilege to advise ADNOC on another transaction unlocking value in its world class infrastructure assets and to play a further role in the delivery of ADNOC's value creation strategy. The transaction is further testament to ADNOC's focus on long term strategic partnerships and the attractiveness of both ADNOC's infrastructure assets and the UAE as a destination for direct investment by leading global institutions."
