Masdar Green REIT
Established in the Abu Dhabi Global Market (ADGM) under the private REIT regime, the Masdar Green REIT is the first in the UAE to invest solely in sustainable real estate assets. Classified as a Qualified Investor Fund (QIF), the Masdar Green REIT offers an attractive opportunity for professional investors to invest in a unique portfolio of stable, income-generating, sustainable real estate assets located in Masdar City, and the UAE.
About Masdar Green REIT
The Masdar Green REIT has a mandate to invest in sustainable real estate assets developed within Masdar City (the pioneering sustainable urban development and technology and innovation hub) and the UAE. One of the world’s most sustainable urban communities, Masdar City is a low-carbon development made up of a rapidly growing clean-tech cluster, a business free zone and a residential neighborhood.
The REIT’s portfolio currently comprises four commercial properties, covering a net leasable area of 57,262 sqm, within Masdar City. The REIT has been given an initial third-party valuation of AED 948,720,000 (U$258,295,671) as of 23 December 2020.
As of December 31, 2021, the Masdar Green REIT portfolio was valued at AED980 million, reflecting a valuation gain of approximately AED32million over the year.
MCML & MGR Board of Directors
Abdulla Balalaa – Chairman,
Executive Director of Masdar City, Masdar
Niall Hannigan – Director
Chief Financial Officer, Masdar
Francisco Galan – Director
Head Development and Portfolio Management, Masdar
MCML Senior Management Team
Senior Executive Officer, Masdar Green REIT
Portfolio Manager, Masdar Green REIT
Finance Officer, Masdar Green REIT
Investing with Masdar Green REIT
With environmental, social and governance (ESG) factors playing an increasingly important role in investment decision-making, professional investors are seeking assets with truly sustainable characteristics. As the first ‘green’ REIT in the UAE, the Masdar Green REIT gives investors what they are seeking, allowing them to invest in the sustainable income-generating real estate assets in Masdar City, Abu Dhabi’s flagship sustainable urban development and the UAE.
By contributing more funding to support the future expansion of Masdar City, including new buildings, the REIT will help bring more sustainable real estate assets onto the market. Masdar City’s robust project pipeline means that the REIT’s value could grow as high as AED2.5 billion in the short term.
The Masdar Green REIT will also provide an investment vehicle through which third-party, sustainable developers can monetize their assets, attracting both real estate developers and investors to Masdar City.
As a Qualified Investor Fund, the Masdar Green REIT is open to market counterparties and professional investors (as defined under the FSRA regulations) by private placement. The long-term aim is for the Masdar REIT to become a public REIT, providing initial investors with an exit strategy, and creating an avenue for smaller, retail investors to invest in sustainable real estate assets. An investment Prospectus shall be issued in the near future from the registered office of the Fund Manager.
Masdar has entered into a strategic outsourcing agreement with Emirates NBD Asset Management, an award-winning asset manager in the UAE, to receive the services of experienced personnel who will provide management services for the Masdar Green REIT. Together, the strategic agreement brings significant experience, giving investors the assurance of working with two of the UAE’s leading brands.
What is a REIT?
A Real Estate Investment Trust (REIT) is a fund that owns and operates incoming-producing properties and distributes to the Unitholders at least 80% of its audited annual net income. Investors can buy shares in a REIT and in return, they receive a share of the rental income that the REIT earns from the properties that it owns. In addition, investors have the opportunity to benefit from capital appreciation on the properties in the fund: