Invest AD, the Abu Dhabi asset manager, will create a real estate investment trust (Reit) in a joint venture with Canada's Brookfield Asset Management to target investment opportunities in the UAE.
Brookfield, which has US$250 billion of assets under management, will develop other real estate investment products in collaboration with Invest AD in addition to the Reit, which will be formed under the regulatory framework of Abu Dhabi Global Market.
"The UAE real estate market has reached a level of maturity that requires the professional management of assets and supports the creation of investment vehicles that will be attractive to institutional and individual investors," said Faras Al Ramahi, the chief executive of Invest AD.
“Invest AD’s partnership with Brookfield, one of the most respected names in global real estate, will help to deliver innovative and value-enhancing real estate investment products. Through the Reit, which is just the first product that the joint venture is planning, we aim to build a portfolio of high-quality assets and bring other property owners across the UAE into a successful partnership while offering investors the benefits of liquid access to stable, income-generating commercial real estate.”
Reits trade like stocks and bonds on an exchange, paying out dividends from rent to investors.