Abu Dhabi's ADQ invests in Greek property start-up Blueground

This marks first deal under the state-owned holding company's $4.2bn bilateral investment partnership with Greece

Abu Dhabi's ADQ says its investment will help Blueground expand to 50 cities by 2025. Chris Whiteoak / The National

Abu Dhabi's holding company ADQ has backed Blueground, a Greek start-up specialising in short and long-term furnished apartment rentals, as part of its wider agreement to invest in the European country.

The investment by DisruptAD — ADQ's venture arm — into the property-tech company will help Blueground reach its target to expand to 50 cities by 2025, DisruptAD said in a statement on Monday, without providing the value of its investment.

This move marks the first deal under the state-owned holding company's €4 billion ($4.2 billion) bilateral investment partnership with Greece, announced earlier this year.

“Our investment in Blueground reinforces our commitment to promoting core sectors of the economy as part of ADQ’s Sovereign Investment Partnership with Greece,” Amer Al Ameri, head of venture capital and technology investments at ADQ, said.

“The success of disruptive technologies, such as the platform developed by Blueground, will act as a catalyst in accelerating the sustainable development of the Greek economy.”

In May, the UAE and Greece said they had agreed on an initiative to invest in the Greek economy. Investments will be made in sectors including infrastructure, renewable and new forms of energy, health care and pharmaceuticals, food and agriculture, plus logistics, UAE state news agency Wam reported at the time.

Blueground, the Athens-based premium furnished rental apartments service, said in September 2021 that it had raised $180 million to fund its expansion into new markets and accelerate its business growth, as demand for flexible rentals rises in the post-Covid era. The start-up has raised a total of $258 million since its inception, it said at the time.

The series C funding valued the company at $750 million, according to its website.

“With its rapidly expanding operations in mature real estate markets globally, Blueground has a promising journey ahead,” Mr Al Ameri said.

“Our collaboration will enable us to unlock growth opportunities in line with our mandate in delivering strong and sustainable financial returns.”

ADQ launched DisruptAD in 2021. The platform aims to be a long-term partner by providing access to capital for early- and late-stage start-ups.

“The investment from DisruptAD will enable us to continue expanding our portfolio of apartments across the globe,” Alex Chatzieleftheriou, founder and chief executive of Blueground, said.

“As remote working has created greater flexibility in the workforce, our platform is uniquely positioned to support professionals who are looking to find a new home in their city of choice.”

Established in 2013, Blueground now operates in 26 cities in Europe, North America and Asia, with a portfolio of approximately 8,000 apartments.

By the end of 2025, Blueground aims to expand its network of apartments to 35,000 in 50 cities.