Masdar Green Real Estate Investment Trust (REIT) has signed a financing commitment to the tune of $200 million with First Abu Dhabi Bank (FAB) to facilitate further acquisitions and portfolio growth.
FAB will act as sole mandated lead arranger and bookrunner, green loan coordinator, agent, security agent and account bank for this transaction.
The announcement was made during an official signing ceremony held at the 4th Abu Dhabi Sustainable Finance Forum during Abu Dhabi Sustainability Week – the global platform for accelerating sustainable development hosted by Masdar.
“Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (ESG) practices criteria,” said Abdulla Balalaa, Executive Director, Masdar City and Chairman of the REIT. “The Masdar Green REIT’s portfolio currently includes four commercial properties within Masdar City, which is the pioneering sustainable urban development project, and technology innovation hub, in Abu Dhabi. The financing from First Abu Dhabi Bank, will help the REIT in building its sustainable real estate portfolio through additional acquisitions of properties in Masdar City. The proceeds of these acquisitions will in turn assist Masdar City to bring more sustainable real estate assets to market through new sustainable developments and continuing the future expansion of Masdar City.”
“The Masdar Green REIT will give investors the responsible and forward-thinking investment options they are looking for, via these sustainable income-generating real estate assets, with a primary focus in Masdar City. The properties within the Masdar Green REIT’s current portfolio consume approximately 40 percent less electricity and water than comparable buildings in Abu Dhabi, targeting sustainability ratings of three Pearls or above on Abu Dhabi’s Estidama Pearl Building Rating System, while one asset is also LEED Platinum certified. This REIT also intends to provide a vehicle through which third-party, sustainable developers can monetize their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors,” Balalaa continued.
Mustafa Al Khalfawi, Head of Global Banking UAE and Global Head of Government, Sovereigns and Public Sector, Investment Banking Group, said, “First Abu Dhabi Bank has made a commitment to fund projects that deliver tangible environmental and social benefits, and we are leading the way forward in financing the transition to a more sustainable future. As one of our strategic clients, we are delighted to support Masdar City in this landmark transaction, with an innovative and flexible financing structure to enable the Masdar Green REIT to fulfill its strategic objectives. The transaction serves to underline FAB’s ongoing commitment to Masdar and sustainable financing, and we look forward to further deepening our relationship as Masdar implements its exciting plans to grow its high-quality portfolio.”
In 2018, Masdar signed the first green revolving credit facility in the Middle East, helping to support its investments in global clean technology and sustainable real estate projects.