The Abu Dhabi Pension Fund is going to buy a 31% stake in the Abu Dhabi National Oil Company (ADNOC)’s real estate vehicle, Abu Dhabi Energy Real Estate Company (ADEREC – it’s a lot of acronyms, we know, but stay with us), for $900m.

This agreement will allow all parties involved to further diversify their investment portfolios away from the oil and gas industry. This strategy has been trending amongst government-backed institutions in the region, but there has been an uptick particularly during these challenging pandemic-ridden times, even for solid sectors such as oil and energy. Just last September, ADNOC, for instance, joined forces with a consortium led by Apollo Global Management to invest in a $5.5b underlying real estate portfolio.