Mubadala Investment Company, Aldar Properties, Ares Management set up a USD 1 bn private real estate fund to purchase real estate in the UK and Europe, with the funds set to be invested over the next three to five years, according to a press release. Mubadala holds a 50% stake of the fund, while Aldar holds 30% and Ares holds the remaining 20%.

Aldar will also invest USD 100 mn into the Ares European Real Estate Debt strategy, set up by Mubadala and Ares in 2021, focusing on senior secured debt. The strategy is expected to upsize to USD 2 bn in capital from Mubadala, Aldar, and Ares, with the total capital available for the strategy expected to be over USD 5 bn.

What Aldar said: “This partnership between Mubadala, Ares, and Aldar is wholly unique, blending financial strength, a proven track record and in-depth knowledge of the real estate sector and asset classes. It is an ideal opportunity in terms of timing to gain both high quality exposure to a key asset class and a solid foothold in a market that is not only scalable but that also offers favorable risk-adjusted returns through market cycles,” said Talal Al Dhiyebi, Aldar’s Group CEO.

What Mubadala said: “Mubadala has strong and strategic relationships with both Ares and Aldar, and this new platform leverages the collective strengths of each party to invest in the private real estate credit market in the United Kingdom and Europe. This collaborative approach reflects our shared commitment Mubadala Classification: Internal Classification : External General Purpose to identifying and capitalizing on unique investment opportunities that deliver sustainable, long-term returns,” said Omar Eraiqaat, Deputy CEO of Disruptive Investments

at Mubadala.

What Ares said: “The global [chance] for flexible private real estate lenders continues to grow as we see ongoing retrenchment of traditional sources of capital…Our most recent investments reflect our ability to step into complex situations and provide flexibility up and down the risk/return spectrum at scale. We look forward to further pursuing attractive lending opportunities and executing on our debt investment strategy in Europe alongside Mubadala and Aldar,” said Ares’ Head of European Real Estate Debt, Phil Moore.

About Ares: A global investment manager with approximately USD 49 bn in real estate assets, Ares has initiated and closed over USD 1.2 bn in European real estate loans since its launch in January 2022.

ICYMI: Aldar recently acquired UK developer London Square for AED 1.07 bn, in its first foray outside the MENA region, according to a press release.

The story also got ink in the foreign press:Bloomberg | The Business Times

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