Abu Dhabi's Peninsula Real Estate receives strategic investment from Fortinbras fund

Move will help the ADGM-based company to expand its commercial property portfolio in the UAE and across the GCC

The Yas Island skyline. Abu Dhabi recorded 5,472 property transactions worth $7.59 billion in the first quarter of 2023. Alamy

Peninsula Real Estate, an Abu Dhabi-based property investment company, has received a strategic investment from Fortinbras Enterprises to help it expand and diversify its property portfolio in the UAE and across the GCC.

New York-based Fortinbras made the investment through one of its affiliate funds, Peninsula, which is based at the Abu Dhabi Global Market, said on Friday.

It did not disclose the size of the investment and other financial details of the transaction.

The investment will support Peninsula’s strategy of expanding its footprint in the booming UAE real estate market, as well as investments in properties in other Gulf state.

The company is currently focusing on the acquisition, development and management of office, industrial and logistics properties in the six-member economic bloc.

“The UAE is experiencing enormous growth, driving high and sustained demand for commercial real estate,” said Asad Hussaini, executive vice chairman of Peninsula.

“Peninsula is closely aligned with Fortinbras in our shared focus on leveraging this growth to create significant returns for partners.”

The UAE property market has continued to recover from the coronavirus-induced slowdown on the back of government initiatives, higher oil prices and other measures to support the economy.

Abu Dhabi recorded 5,472 property transactions worth Dh27.9 billion ($7.59 billion) in the first quarter of 2023, according to the latest data from the Department of Municipalities and Transport.

The value of the deals more than doubled during the three-month period to the end of March while the volume of transactions, which include property sales and mortgages, rose by 66 per cent.

The value of property sales more than tripled to Dh16.2 billion while mortgage deals were up 70 per cent at Dh11.7 billion, the data shows.

The booming property market reflects the UAE’s strong economic fundamentals and the continued growth momentum it has maintained since the pandemic-driven slowdown.

The Arab world’s second-largest economy is expected to grow by 3.3 per cent this year and 4.3 per cent in 2024, according to the latest data from the UAE Central Bank.

The continued momentum has resulted in significant opportunities for real estate investments, especially in the commercial segment, Peninsula said.

Office rental values increased have risen by 7 per cent on an annual basis across the key office districts of Abu Dhabi and 15 per cent in Dubai, the company said citing Savills’ UAE property report release in March.

“We are focused on the GCC, particularly the UAE … [where] growth reflects thoughtful policies and effective leadership that have made it an attractive and strategic destination for long-term investment,” said Ben Black, managing director at Fortinbras.