Smart city developer Masdar, a subsidiary of Abu Dhabi sovereign wealth fund Mubadala Investment Company and a pioneer in sustainable urban planning, announced on Wednesday that it is partnering with Emirates NBD Asset Management to manage the UAE’s first sustainable real estate investment trust, the Masdar Green REIT.
Masdar had previously announced plans to launch a REIT—the first ever in the UAE to invest solely in sustainable real estate projects—at last year’s Abu Dhabi Sustainability Week.
Now, the aptly named Masdar Green REIT has been formally established at Abu Dhabi Global Market (ADGM) as a Qualified Investor Fund (QIF), and will be made available through private placement to accredited investors, offering a portfolio of stable, income-producing sustainable real estate assets.
Masdar confirmed on Wednesday that the REIT has now received approval from ADGM’s Financial Services Regulatory Authority to begin operations.
The Masdar Green REIT’s portfolio currently includes four commercial properties within Masdar City, Abu Dhabi’s government-funded, planned city development built according to low-carbon guidelines, with integrated technology and innovation hub. All of the properties consume approximately 40 percent less electricity and water than comparable buildings in Abu Dhabi, giving them a rating of three “Pearls” or above on Abu Dhabi’s Estidama Pearl Building Rating System. One property is also LEED Platinum certified.
“The Masdar Green REIT is the first of its kind in the region and further demonstrates Masdar’s commitment to pioneering sustainable development,” said Abdulla Balalaa, Acting Executive Director for Sustainable Real Estate at Masdar City. “Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (ESG) practices criteria. The Masdar Green REIT gives investors that option by investing in sustainable income-generating real estate assets, with a primary focus in Masdar City. This REIT also provides a vehicle through which third-party, sustainable developers can monetize their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors.”
“We are delighted to be bringing together two of the UAE’s strongest brand names to work on the Masdar Green REIT, an exciting new investment product for the UAE’s REIT market,” Steve Corrin, SEO of Emirates NBD Asset Management, said on Wednesday. “The initial portfolio has been created with global ESG principles in mind to offer investors the highest levels of sustainability ratings as well as attractive rental yields in line with investor expectations. Emirates NBD Asset Management, with its long history of institutional real estate asset management in the UAE provides investors with comfort that the Masdar Green REIT will be professionally resourced and operated to international best-practices.”
Masdar Green REIT will provide institutional funding to support the future expansion of Masdar City through new sustainable developments by facilitating more sustainable real estate assets coming to market. The Green REIT is also a major milestone in rolling out the Abu Dhabi Sustainable Finance Declaration, which was signed in 2019 by 25 public and private sector entities, including Masdar and the ADGM, which aims to establish a healthy, sustainable UAE finance industry in support of United Nations Sustainable Development Goals.
Emmanuel Givanakis, Deputy CEO of the ADGM Financial Services Regulatory Authority, said, “As an international financial centre, ADGM has been tireless in championing the region’s sustainable finance agenda and is pleased to support the advancement of the UAE’s first green REIT. Working closely with financial and energy industries stakeholders, including Masdar and Emirates NBD, we seek to encourage and facilitate further advancements and increased investments in the field of sustainable finance. The FSRA is committed to providing its business community and partners with the ecosystem and regulatory support to develop and achieve innovative investment solutions across the UAE.”
Masdar has been advancing the commercialization and deployment of renewable energy, sustainable urban development and clean technologies since 2006, and today is active in more than 30 countries. In 2018, Masdar signed the first green revolving credit facility in the Middle East, to support its investments in global clean technology and sustainable real estate projects.
ADSW goes online
This week, the 2021 Abu Dhabi Sustainability Week (ADSW) summit got underway, in the presence of His Highness Sheikh Hazza bin Zayed Al Nahyan, Vice President of the Abu Dhabi Executive Council. Hosted by Masdar, this year’s event is being held virtually, due to covid-19.
His Highness welcomed leaders, officials and experts participating in the sessions of this year’s summit to discuss how to enact a ‘green recovery’ to help economies rebound from the pandemic and build a more sustainable future for all.
He also emphasized that the UAE is continuing efforts under the leadership of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and with the support of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to stimulate sustainable development, and said that ADSW is particularly relevant this year as it represents a global platform for dialogue and setting sustainable development agenda based on green recovery principles.
“In light of the exceptional circumstances that the world is experiencing, there is an urgent need to take practical steps and initiatives that contribute to accelerating the application of the principles and foundations of sustainable development, with the need to take proactive steps, plan for a more flexible future and strengthen capabilities in order to efficiently face the existing and emerging challenges,” His Highness told attendees.
This year’s online edition of Abu Dhabi Sustainability Week has attracted more than 45,000 participants (virtually) from more than 170 countries, with participation from 10 heads of state, in addition to 160 ministers and ambassadors.
