Masdar's new 'Green Reit' to be managed by Emirates NBD

The Reit currently contains four commercial properties in Masdar City with strong sustainabilty credentials

Emirates NBD Asset Management will be managing the UAE’s first sustainable real estate investment trust, the Masdar Green Reit. Chris Whiteoak / The National

Masdar is entering into a partnership with Emirates NBD Asset Management to offer the UAE’s first sustainable real estate investment trust, the Masdar Green Reit.

The Masdar Green Reit has been set up at Abu Dhabi Global Market as a qualified investor fund, offering professional investors the opportunity to invest in a portfolio of income-producing, sustainable real estate assets. Masdar Capital Management, a recently-created fund manager within ADGM, will work with Emirates NBD Asset Management, which has experience of property asset management through its own listed Reit.

Masdar, a subsidiary of Abu Dhabi’s strategic investment arm Mubadala Investment Company, first announced plans for the Reit during last year's Abu Dhabi Sustainability Week.

“Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (ESG) practices criteria,” said Abdulla Balalaa, acting executive director of sustainable real estate at Masdar City. “The Masdar Green Reit gives investors that option by investing in sustainable income-generating real estate assets, with a primary focus in Masdar City.”

The Reit's portfolio currently includes four commercial properties in Masdar City, which consume about 40 per cent less electricity and water than other buildings in Abu Dhabi, according to Masdar. Three of the buildings have a 'three Pearl' rating under Abu Dhabi's Estidama rating system, while the fourth has a LEED Platinum rating from the US Green Buildings Council.

The Reit also provides a vehicle through which “third-party, sustainable developers can monetise their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors,” Mr Balalaa added.

“The Masdar Green Reit will facilitate more sustainable real estate assets coming to market by providing institutional funding to support the future expansion of Masdar City through new sustainable developments,” Masdar, said.

The company also confirmed that the Reit has now received approval from ADGM’s Financial Services Regulatory Authority to begin operations.

Masdar is currently active in more than 30 countries with a total renewable energy capacity of 10.7 megawatts. The company is aiming to double its capacity in the next five years as governments focus on renewable energy projects, Yousif Al Ali, executive director for clean energy, told The National this week.

In 2018, Masdar signed the first green revolving credit facility in the Middle East to support its investments in global clean technology and sustainable real estate projects.