PineBridge to invest US$400 million in Middle East property

05 June 2014   Category: News, Global, Middle East, USA   By Daniel Shane

New York-based asset manager PineBridge Investments has said it will invest up to US$400 million in real estate in countries including the United Arab Emirates and Saudi Arabia.

The firm, which is controlled by Hong Kong billionaire Richard Li, will target sale-and-leaseback deals on properties including shopping malls, schools, hospitals and warehouses, its Middle East chief executive officer Talal Al Zain told Bloomberg.

Mr. Al Zain said that PineBridge planned to raise $200 million for its GCC Real Estate Fund and borrow an additional $200 million. By its first close it had raised $140 million, he said, adding that the fund would not invest in residential properties.

“We are not part of speculative real estate investments,” Mr. Al Zain told Bloomberg. “We are proactively going to owners of properties and businesses and asking them to look at sale and leaseback as an alternative to bank financing for their growth.”

He added that PineBridge was already working on deals and anticipated closing the first of these in the near future.

As of March 31 this year, PineBridge had $71.4 billion in AUM, with 47% of its portfolio allocated to fixed-income, 26% to equities, 21% to alternatives, and 6% allocated to other investments.