UAE’s first green REIT value could be as much as $272mn

Sustainable real estate investment trust (REIT) unveiled with an initial valuation between $258 million and $272 million.

Masdar has announced that it has launched a sustainable real estate investment trust (REIT) with an initial valuation between $258 million and $272 million. Ahmed Ali Al Sayegh, minister of state and chairman of Abu Dhabi Global Market (ADGM), Khaled Al Qubaisi, chief executive officer of Aerospace, Renewables & ICT at Mubadala Investment Company, and Mohamed Jameel Al Ramahi, chief executive officer of Masdar launched UAE’s first ‘green’ REIT at the Abu Dhabi Sustainability Week.

To be established at ADGM, it will offer the first private REIT regime in the MENA region as part of its business ecosystem and will initially include four commercial properties within Masdar City. It will be launched as a Qualified Investor Fund, open to market counterparties and select clients by private placement. The properties cover a net leasable area of 57,493 sqm, and they have all achieved a rating of 3 Pearls or above on Abu Dhabi’s Estidama Pearl Building Rating System.

Commenting on the launch, Al Ramahi said that this is a significant milestone for green investment in the region, and that it demonstrates Masdar’s leadership in sustainable development.

“This is the first venture of its kind here, and offers investors an attractive option to invest in sustainable income-generating real-estate assets that are helping to contribute to a greater future for all. Investors are increasingly looking for ‘responsible investments’ and are evaluating companies based on specific environmental, social and governance practices criteria.”

“The REIT will contribute to the development and strength of Abu Dhabi’s real-estate sector and bring in greater investment from domestic and international investors that want to make a real difference,” he added.

Richard Teng, CEO of the ADGM Financial Services Regulatory Authority, said: “We are pleased to be facilitating this landmark REIT and commend Masdar’s efforts towards the progression of the UAE’s sustainability agenda.”

“ADGM offers the ideal environment in that it combines a forward-thinking REIT regime, which was developed in response to market demand, with a strong focus on sustainable finance – an effort that ADGM has been spearheading in the region. We look forward to further advancing the UAE’s sustainability objectives alongside Masdar through the establishment of this REIT.”

Additionally, this ‘green’ REIT also marks the progress in bringing the Abu Dhabi Sustainable Finance Declaration to life, which was signed last year by 25 public and private sector entities, including Masdar and ADGM. It is aimed at establishing a healthy and sustainable finance industry that supports the UAE in attaining the United Nations Sustainable Development Goals.


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