Baker McKenzie Habib Al Mulla advises ADNOC on $5.5bn deal

Direct upfront proceeds of almost half of the full deal amount – upto $2.7bn – will flow to ADNOC from the transaction

Baker McKenzie Habib Al Mulla advises ADNOC on $5.5bn deal
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Baker McKenzie Habib Al Mulla advises ADNOC on $5.5bn deal

International law firm Baker McKenzie Habib Al Mulla recently advised Abu Dhabi National Oil Company (ADNOC), on one of the region’s largest real-estate transactions as it signed a long-term agreement worth $5.5bn (AED20.2bn) with New York Stock Exchange-listed Apollo Global Management, one of the world’s largest alternative investment managers.

The agreement aims to lease some of ADNOC’s real-estate assets as part of its strategy to unlock capital from its non-core assets.

Construction Week reported in the first week of September 2020 that the strategic investment will leverage the rental income streams from select ADNOC real estate assets under a 24-year master lease agreement.

The investment aims to unlock new pools of global institutional long-term capital for ADNOC, while supporting investment in its core business and strategic growth projects.

In one of the region’s largest real estate transactions, Apollo led a consortium of institutional investors in the acquisition of a 49% stake in Abu Dhabi Property Leasing Holding Company RSC Limited (ADPLHC), a wholly-owned affiliate of ADNOC.

Direct upfront proceeds of almost half of the full deal amount – upto $2.7bn – will flow to ADNOC from the transaction, which is expected to close before the end of 2020.

The Baker McKenzie Habib Al Mulla team was led by Partners Borys Dackiw and Steven Henderson along with Senior Associate Keri Watkins, Associate Hazem Hebaishi, and Trainee Associate Sami Saygh.

Commenting on the transaction, partner at Baker McKenzie Habib Al Mulla, Borys Dackiw, said: “We greatly appreciate our relationship with our long-standing client ADNOC and are excited to successfully deliver this exceptional transaction during such challenging times.

“This real-estate investment partnership reflects the growing confidence in the Middle East region and we can certainly expect more opportunities to present themselves both in the short and long-term.”

Furthermore, Partner at Baker McKenzie Habib Al Mulla, Steven Henderson, concluded: “We are pleased to have had the opportunity to work closely with ADNOC and represent them on a real-estate transaction of this magnitude.

“Despite the current challenging economic environment globally and regionally, the UAE remains an attractive global investment hub, including in the real estate sector, and this milestone transaction is a great example of that.”

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