Mubadala, Pramerica launch joint venture firm

Mubadala Development Company and Pramerica Real Estate Investors, a unit of US-based Prudential Financial, have agreed to set up a company that will raise capital to fund and invest in real estate projects in Abu Dhabi and other international markets.

Mubadala Pramerica Real Estate Investors (Mubadala Pramerica REI), the joint venture, will be owned equally by the two companies and will be headquartered in Abu Dhabi.

“The joint venture will become operational soon, but we are not in a position to specify a date,” a Mubadala spokesperson told Emirates Business.

In a press statement, Waleed Al Muhairi, Chief Operating Officer for Mubadala, said: “By partnering with Pramerica, we’re bringing together one of the world’s leading real estate investment companies with our regional market expertise and knowledge. This is a compelling prospect for investors that want to participate in the current and future growth of the region.”

The joint venture, according to the spokesperson, will only raise capital to fund and invest in real estate projects and will not develop, or act as a developer of real estate projects.

“The JV will be contracting with real estate developers to build and develop the real estate projects it will invest into.”

Mubadala has already set up two other joint ventures for development purposes.

It established Capitala, a company in parnership with CapitaLand, South East Asia's largest real estate company, in 2008.

In the same year, it set up John Buck International with Chicago-based The John Buck Company.

Asked why the company is only focusing on affordable housing segment, the spokesperson added: “The company is not just focusing on the mid-market and mid-income segment. However, initially the strategy will be to create investment opportunities to fund real estate projects in Abu Dhabi in this segment.”

The joint venture is also actively pursuing other opportunities internationally and will offer investment products across different real estate asset classes, serving institutional investors in the US, Europe, Asia and the Middle East, along with products tailored for family office and high net worth investors from the region.

In accordance with Abu Dhabi’s Economic Vision 2030 plan for diversifying its economy and the resulting workforce growth, the emirate expects to double its residential population over the next 20 years to more than three million.

Charles Pardoe, Managing Director of Mubadala Pramerica REI, said: “A shortage of bank lending provides a near-term opportunity for investors to fill the gap and provide capital to pre-let projects with secure tenancies. And we anticipate being able to offer sustainable opportunities for years to come, especially given Abu Dhabi’s 2030 Plan.”
 

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