The Capital Quest | ADIA to invest $490 mn in Australia real estate, backs Europe-focused fund

The Abu Dhabi Investment Authority (ADIA) is set to invest up to A$700 million ($490 million) in the real estate sector in Australia.

ADIA, the biggest sovereign wealth fund of the emirate of Abu Dhabi, has given a mandate to real estate investment manager Qualitas to make the investment.

Qualitas said in a release that its mandate is to invest in the Australian commercial real estate private credit market on behalf of a new investment vehicle.

Apart from this mandate, ADIA will also buy a 9.99% stake in Qualitas, although this will be conditional on the sovereign wealth fund raising its total investment mandate to A$1 billion.

Qualitas, which is listed on the Sydney stock exchange, said the equity infusions from ADIA will be incremental and exercisable in tranches if ADIA increases its mandate.

Qualitas further said that the mandate will be carried out via a newly minted full discretionary investment vehicle, the Qualitas Diversified Credit Investments (QDCI). Qualitas itself is investing A$35 million or 5% into QDCI. The vehicle will, however, not be open to other investors.

Qualitas, which was founded in 2008, invests in the Australian real estate equity and debt markets. It invests in senior debt, preferred equity and mezzanine debt. It has invested in assets in excess of $11 billion. Apart from ADIA, it already manages assets of companies based out of Australia, Europe and Asia.

McWin Restaurant Fund

ADIA has backed the newly launched €500 million McWin Restaurant Fund, which has been floated by food industry veterans Henry McGovern and Steven Winegar.

The two entrepreneurs have, in the past, backed brands including craft bakery Gail’s and pasta chain Vapiano and their newest vehicle will invest in restaurants.

The new vehicle will make equity investments of at least €100 million to help localized restaurant brands become more digital and expand abroad.

McGovern is the founder of AmRest Holdings SE, while Winegar started Restauravia Grupo Empresarial. The two also back meat substitute company Impossible Foods and franchisee Burger King Germany.

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