Mapletree Investments is opening an office in Abu Dhabi, betting on one of the few bright spots in the global commercial real estate market to revive its beleaguered portfolio.
The property manager owned by Singapore state investor Temasek Holdings has re-hired Khairul Abdullah to lead its foray into the Middle East and scout for opportunities in the region, according to people familiar with the matter who asked not to be identified discussing private matters.
Abdullah was previously a vice-president at the firm before leaving to join Abu Dhabi’s biggest listed developer Aldar Properties PJSC, according to his LinkedIn profile.
A spokesperson for Mapletree confirmed plans to set up an office in Abu Dhabi as part of the firm’s growth and expansion plans, but declined to provide further details.
The commercial real estate market has boomed in Abu Dhabi and neighbouring Dubai, in sharp contrast to cities like New York, London and Hong Kong where office vacancies are at multi-year highs.
Abu Dhabi’s sovereign wealth funds that control over US$1.5 trillion ($2.02 trillion) have been a big draw for hedge funds and billionaires. Perks like a tax-free income, sunny weather and a timezone that allows workers to trade across Asian, European and US hours are also helping both emirates attract global financial firms.
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Mapletree previously said it has expanded its private capital management team with representatives in the Middle East for “wider investor coverage and to enhance its existing global network of capital partnerships”, in its annual report published earlier in July.
The foray into the Middle East comes at a time when Mapletree’s bets in commercial real estate elsewhere have soured. It posted its first loss in two decades, which it attributed largely to valuation declines on its office portfolios in the US, Europe and Australia.
More than 40% of Mapletree’s $77.5 billion assets under management are in North America and China. It aims to increase AUM to $100 billion to $120 billion in five years, despite falling short of its targets in the preceding half-decade plan.
