Mubadala Development Company (Mubadala) and Pramerica Real Estate Investors have agreed to launch a joint venture company that will raise capital from investors to fund and invest in real estate projects in Abu Dhabi and other global markets.
Mubadala Development Company (Mubadala) and Pramerica Real Estate Investors have agreed to launch a joint venture company that will raise capital from investors to fund and invest in real estate projects in Abu Dhabi and other global markets. Pramerica Real Estate Investors is the real estate investment and advisory business of U.S.-based Prudential Financial, Inc. (NYSE: PRU).
The company, called Mubadala Pramerica Real Estate Investors (Mubadala Pramerica REI), will be headquartered in Abu Dhabi and will adhere to Pramerica’s established research-based investment process. The venture will sponsor funds that will invest in the region and worldwide.
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.”
Initially, the company’s strategy will be to create investment opportunities to fund real estate projects in Abu Dhabi. In time, the company will offer products across the entire spectrum of real estate categories, serving institutional investors in the U.S., Europe, Asia and the Middle East, along with products tailored for family office and high net worth investors from the region.
“This partnership expands our commitment to this region,” said Allen Smith, CEO of Pramerica Real Estate Investors. “We’re delighted to be working with Mubadala on this venture, which combines our global presence and investor relationships with Mubadala’s reputation and regional expertise, to give our clients an opportunity to invest in a dynamic, growing economy.”
In accordance with Abu Dhabi’s Economic Vision 2030 plan for diversifying its economy and the resulting workforce growth, Abu Dhabi expects to double its residential population over the next twenty years to over three million. To meet this projected demand, the venture will aim to offer vehicles investing in affordable residential properties for nurses, engineers, technicians, teachers and other mid-income professionals in Abu Dhabi.
“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,” said Charles Pardoe, managing director of Mubadala Pramerica REI. “This partnership, with its focus on transparency and corporate responsibility in the region, provides the potential for attractive and reliable returns through conventional and Shariah-compliant investment vehicles.” In addition to offering investors around the world access to the Middle East North Africa region, the venture will also give investors in the Middle East access to Pramerica Real Estate Investors’ global strategies outside of the region.
Notes to editors:
Closing is conditional upon receiving the required antitrust approvals and regulatory authorizations related to asset management activities.
Mubadala Pramerica Real Estate Investors is a joint venture between Mubadala and Pramerica Real Estate Investors, the real estate investment management business of Prudential Financial, Inc. The new company brings together best in class expertise and knowledge to offer highly attractive international investment opportunities, advice and management services in the real estate market.
Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government, the company’s strategy is built on the management of long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the Emirate.
Mubadala brings together and manages a multi-billion dollar portfolio of local, regional, and international investments. The company partners with leading global organizations to operate businesses across a wide range of industry sectors including aerospace, energy and industry, healthcare, information communications and technology, infrastructure and real estate. By doing so, Mubadala accomplishes its mission to expand the economic base of the Emirate and contribute to the growth and diversification of the Abu Dhabi economy.
For more information about Mubadala, its partnerships and activities please visit http://www.mubadala.ae.
Pramerica Real Estate Investors, the real estate investment management and advisory business of Prudential Financial, Inc., is a leader in the global real estate investment management business, offering a broad range of investment vehicles that invest in private and public market opportunities in the United States, Europe, Asia, and Latin America.
Headquartered in Parsippany, N.J., Pramerica Real Estate Investors has offices in Atlanta, Chicago, New York, San Francisco, Miami, London, Lisbon, Madrid, Milan, Munich, Paris, Luxembourg, Istanbul, Singapore, Mexico City, Rio de Janeiro, Hong Kong, Beijing and Tokyo. As of March 31, 2010, the company managed approximately $43.8 billion in gross real estate assets ($22.9 billion net) on behalf of more than 490 clients worldwide and ranks among the largest real estate investment managers. The company is headquartered in the United States and is not affiliated in any manner with Prudential plc of the United Kingdom. For more information, please visit http://www.pramericarei.com
Pramerica is a tradename used by Prudential Financial, Inc., a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. PFI (NYSE: PRU), a financial services leader with approximately $693 billion of assets under management as of March 31, 2010, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, PFI is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. PFI ‘s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com. PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.
Pramerica media contacts:
Stephanie Highett/Richard Sunderland/Rachel Drysdale
+44 (0)20 7831 3113