The Capital Quest | ADIA to invest $490m in Australian property, backs Europe-focused fund

The Abu Dhabi Investment Authority (ADIA) is expected to invest up to A$700 million ($490 million) in Australia’s property sector.

ADIA, the largest sovereign wealth fund in the Emirate of Abu Dhabi, has mandated real estate investment manager Qualitas to carry out the investment.

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

In addition to this mandate, ADIA will also buy a 9.99% stake in Qualitas, although this is conditional on the sovereign wealth fund increasing its total investment mandate to A$1 billion.

Qualitas, which is listed on the Sydney Stock Exchange, said ADIA’s capital contributions will be incremental and can be exercised in tranches if ADIA increases its mandate.

Qualitas further stated that the mandate will be executed through a new fully discretionary investment vehicle, Qualitas Diversified Credit Investments (QDCI). Qualitas itself is investing A$35 million or 5% in QDCI. However, the vehicle will 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 stocks and mezzanine debt. It has invested in assets of over $11 billion. Besides ADIA, it already manages the assets of companies based in Australia, Europe and Asia.

McWin Restaurant Fund

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

The two entrepreneurs have in the past backed brands such as artisan bakery Gail’s and pasta chain Vapiano and their new 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 overseas.

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

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