The ADCB Macquarie Infrastructure Fund has announced a USD188m investment that will give it exposure to government-commissioned infrastructure projects in the United Arab Emirates.
The ADCB Macquarie Infrastructure Fund has announced a USD188m investment that will give it exposure to government-commissioned infrastructure projects in the United Arab Emirates.
The investment, the first by AMIF since it announced its launch and capital raisings of USD630m in December 2008, will support industrial infrastructure developments commissioned by ZonesCorp, an independent government authority owned by the Abu Dhabi Government through the Department of Planning and Economy.
‘This is a significant investment in the development of world-class infrastructure for industrial zones, such as road and irrigation networks, sewerage utilities and electricity transmission and distribution networks,’ says Jasim Al Darmaki, spokesperson for the ADCB Macquarie joint venture, which manages AMIF.
AMIF intends to provide equity capital for investments across the GCC and certain Mena countries in a full range of infrastructure sectors, such as roads, water and wastewater utilities, ports, airports, district cooling, electricity transmission and distribution, gas distribution and social infrastructure.
‘This investment gives AMIF exposure to ZonesCorp-commissioned projects that form part of its charter to develop the industrial infrastructure of the emirate of Abu Dhabi and create a business climate conducive to growth and economic diversification,’ says Hajir Naghdy, managing director of ADCB Macquarie.
‘The industrial cities that ZonesCorp is establishing within these specialised economic zones are transforming the booming capital of the Emirate of Abu Dhabi into a highly sought-after investment destination.’
Assets to which AMIF will now have exposure include the extensions to the Industrial City of Abu Dhabi, located in the Musaffah industrial area, which is underpinning the growth of Abu Dhabi’s industrial sector.
The first extension to the project, ICADII, an 11sq-km development that was completed in October 2007, is a mixed-use industrial estate that required the construction of approximately 30km of roads, with complimenting irrigation, sewer, gas and power networks.
The next extension, ICADIII, which adds an additional ten sq km to the site, is currently under construction and due for completion in October 2009. The project, which is being constructed under a public private partnership model, will house tenants from the chemical compounds, construction materials and engineering industries.
AMIF will also have an interest in the ZonesCorp-commissioned Al Ain Industrial City – a ten sq-km industrial estate on the main freight road linking Abu Dhabi, Al Ain and Dubai.
This industrial city is a multi-use development but with a focus on light-to-medium manufacturing, engineering and processing industries. The second phase of AAIC opened on 9 January 2008, just 11 months after the opening of the first phase which is already more than 50 per cent tenanted with numerous sites under construction.
‘The projects commissioned by ZonesCorp are vitally important in the promotion of investment in Abu Dhabi’s economic sector and the provision of increased employment opportunities in the Emirate,’ says Naghdy.
‘These projects, all of which have been completed on time and on budget, provide much-needed opportunities for local, regional and global companies to easily establish businesses in world-class facilities, with ready access to international markets.’
AMIF, which is expected to raise up to USD1bn to invest in infrastructure opportunities in the region, is currently raising capital from both domestic and international institutional investors.
