Prudential Real Estate Investors (‘PREI’), the real estate investment and advisory business of Prudential Financial Inc. (PRU), yesterday announced a joint venture partnership with Abu Dhabi-based Mubadala Development Company.
According to the joint venture, a new company in the name of Mubadala Pramerica Real Estate Investors will be formed to capital from investors to fund and invest in real estate projects in Abu Dhabi.
Both partners are contributing an undisclosed amount of start-up capital for the fund. They are also seeking to raise money from across the globe to invest in Abu Dhabi property.
The economy of Abu Dhabi is all set for growth. It is being projected that demand for residence in the region will double over the next twenty years, led by the growth in working population. Thus real estate in the region is the most desirable investment.
This JV will allow PREI’s investors to invest in AbuDhabi’s dynamic and growing economy. At the same time it will enable investors in the Middle East to use PREI’s global investment reach.
Though the new company will initially invest in the real estate sector in Abu Dhabi, it will gradually create investment opportunities in U.S., Europe, Asia and the other regions of the Middle East as well.
Mubadala’s joint venture with Prudential comes in the midst of a severe shortage of financing for property developers. The region has seen property price eroding by more than half over the past one and a half years caused by the economic recession. The absence of capital has caused a widespread slowdown of projects across the country, including parts of Abu Dhabi.
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