Deals and IPOs

UAE oil giant ADNOC signs $5.5 billion real estate deal with Apollo-led consortium

Key Points
  • ADNOC said in a statement that the transaction will result in upfront proceeds of $2.7 billion to ADNOC and is expected to close before year-end.
Employees talk at the reception desk in the lobby of the Abu Dhabi National Oil Company (ADNOC) headquarters in Abu Dhabi, United Arab Emirates, on Thursday, Feb. 22, 2018.
Christopher Pike | Bloomberg | Getty Images

Abu Dhabi National Oil Company (ADNOC) said on Wednesday it had entered into a $5.5 billion real estate investment partnership with a consortium led by Apollo Global Management Inc.

ADNOC said in a statement that the transaction will result in upfront proceeds of $2.7 billion to ADNOC and is expected to
close before year-end.

"The strategic investment will leverage the rental income streams from select ADNOC real estate assets under a 24-year
master lease agreement," it added.

Under the real estate transaction, which ADNOC said was one of the region's largest, private equity firm Apollo led a
consortium of institutional investors to acquire a 49% stake in Abu Dhabi Property Leasing Holding Company (ADPLHC), which is a wholly owned affiliate of ADNOC.

The Abu Dhabi oil producing company will retain a 51% majority stake, maintaining full ownership and control over the
select real estate and social infrastructure assets, it added.