Mubadala Pramerica Real Estate Investors (MPREI) signed an agreement with Tourism Development & Investment Company (TDIC) of Abu Dhabi for the acquisition of Phase One of Saadiyat Beach Residences.
Saadiyat Beach Residences is a newly built luxury residential property located on Saadiyat Island in Abu Dhabi. The completed project will include a total of 495 units in six low-rise apartment buildings situated in a private, gated community. Phase One of the development consists of 285 units over three separate five-story buildings, each containing 95 units in a mix of one, two and three-bedroom apartments. Phase Two, which is scheduled for completion in the third quarter of this year, consists of 210 units of one-to-four-bedroom apartments. Mubadala Pramerica Real Estate Investors is a 50/50 joint venture between Mubadala Development Company and Prudential Real Estate Investors, which does business as Pramerica in the Middle East and Europe. PREI® is the global real estate investment management business of Newark, N.J.-based Prudential Financial, Inc. (NYSE: PRU), which is acting on behalf of its clients.
Under terms of the acquisition, the property is subject to a five-year leaseback to TDIC, in which the company will manage leasing the residences on behalf of MPREI. Phase One, which was launched in the fourth quarter of 2012, is currently 80 percent leased.
“This transaction demonstrates the quality of the real estate investment opportunities in Abu Dhabi today,” said Joe Bonner, chief investment officer for MPREI. “Saadiyat is becoming a true destination for the region, and one which holds the prospect of strong financial returns for our business.”Saadiyat Island, which is already home to a world-class golf course, several five-star hotels and the future Louvre Abu Dhabi, Zayed National Museum and Guggenheim Abu Dhabi museum, was developed by TDIC, the master developer of major tourism, cultural and residential destinations in Abu Dhabi.