Masdar Green REIT, the United Arab Emirates' trailblazer in sustainable real estate investment trusts (REITs), has significantly bolstered its portfolio with the acquisition of AED 934 million (USD 254 million) worth of eco-conscious properties. This strategic move elevates the REIT's total portfolio value to AED 1.91 billion (USD 520 million), solidifying its position as a frontrunner in the region's burgeoning green real estate market.
The announcement, made during Abu Dhabi Finance Week, comes on the heels of a USD 200 million green loan secured by Masdar Green REIT from First Abu Dhabi Bank in January 2022. This funding specifically targeted the expansion of the REIT's portfolio, enabling the acquisition of sustainable properties that align with its core environmental, social, and governance (ESG) principles.
The latest additions to Masdar Green REIT's portfolio boast impressive sustainability credentials. Two of the acquired properties are LEED Platinum-certified buildings situated within Masdar City, a pioneering sustainable urban development in Abu Dhabi. These buildings include the headquarters of the Abu Dhabi Quality and Conformity Council and the Etihad Airways' Eco Residences complex. The third property, the Technology Innovation Institute's headquarters, carries a LEED Gold certification. All three acquisitions have achieved a commendable 3 Pearl rating under the Abu Dhabi Estidama Pearl Building Rating System, a program that benchmarks a building's sustainability performance.
Masdar Green REIT's strategic acquisitions were met with enthusiasm by industry experts. Anthony Taylor, Senior Executive Officer of Masdar Capital Management Limited, the fund's manager, emphasized that this expansion phase serves as a powerful testament to the fact that sustainable development offers a compelling commercial proposition alongside its environmental benefits.
"Climate-resilient development is paramount if we are to achieve net-zero goals," asserted Taylor. "The success and growth trajectory of Masdar Green REIT to date illustrate a viable path towards achieving this objective. The fact that the REIT's assets have more than doubled in value within just two years underscores the immense potential for sustainable real estate development in the region. This further underscores the broad appeal Masdar City holds for investors, being a flourishing innovation hub and a thriving sustainable community," he concluded.
Masdar Green REIT's targeted acquisitions not only expand its portfolio but also ensure a high occupancy rate of 98% and an extended average lease term exceeding six years. This strategic growth positions Masdar Green REIT as an attractive investment opportunity for investors seeking exposure to the burgeoning sustainable real estate market while generating stable returns.