Abu Dhabi fund takes full ownership of New York office block

Gulf funds have invested in US real estate for decades. Above, Abu Dhabi Corniche. (Shutterstock)
Updated 12 June 2019

Abu Dhabi fund takes full ownership of New York office block

  • ADIA bought 25 percent of 330 Madison Avenue from Vornado Realty Trust
  • ADIA, which the Sovereign Wealth Fund Institute estimates manages nearly $700 billion in assets, has between 5 to 10 percent of its portfolio in real estate

ABU DHABI: Abu Dhabi Investment Authority (ADIA) said on Wednesday it had bought 25 percent of 330 Madison Avenue from Vornado Realty Trust, gaining full ownership of the New York office block.
ADIA, which the Sovereign Wealth Fund Institute estimates manages nearly $700 billion in assets, has between 5 to 10 percent of its portfolio in real estate.
The stake was bought by a subsidiary of ADIA, a spokesman said, adding it had owned the rest of the property for 30 years.
The deal is expected to close in the third quarter of this year.
Gulf sovereign wealth funds, especially Abu Dhabi and Qatari funds, have for decades been investing in commercial real estate in Europe and the US.
Vornado recently sold a non-controlling stake in its portfolio of New York properties along Fifth Avenue and Broadway in a transaction that provided the firm cash proceeds of about $1.2 billion.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”