Mubadala Investment Company, Abu Dhabi’s strategic investment arm, has partnered with a consortium of international investors to acquire Germany's Techem Energy Services to boost decarbonisation efforts in the real estate sector.
Mubadala, Swiss financial services company Partners Group, Singapore's sovereign wealth fund GIC and US alternative asset management firm TPG Rise Climate will buy Hesse-based Techem for Dh29 billion ($7.9 billion), Mubadala said in a statement on Monday. The transaction is expected to be finalised in the second half of this year.
Techem, founded in 1952, is a provider of energy efficiency solutions in real estate and is "well positioned" to help scale decarbonisation in the sector, said Abdulla Shadid, head of energy and sustainability at Mubadala’s private equity platform.
This is in line with Mubadala's "long-term commitment to deploying capital purposefully and helping to find solutions to global challenges", he added.
Governments around the world are increasingly making commitments to reduce carbon emissions across industries to meet decarbonisation targets as part of the fight against climate change.
Real estate is one of the biggest contributors to carbon emissions. Buildings account for about 60 per cent of emissions in cities and decarbonising the industry will be crucial to achieving net zero targets for urban areas, real estate consultancy JLL said.
In a study of 32 cities around the world, 25 have said new buildings will be net zero by 2030, while 26 have made the same pledge for all buildings by 2050, JLL data shows.
“The decarbonisation of the real estate sector continues to be a global priority for better and more sustainable living," Mr Shadid said.
Investing on behalf of the Abu Dhabi government, Mubadala has a $330 billion portfolio and is at the centre of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil. Its interests span six continents and involve various sectors and asset classes.
Mubadala was ranked as the world’s top sovereign investor in 2024, ahead of Saudi Arabia’s Public Investment Fund, industry specialist Global SWF said in a January report.
Mubadala posted a 9.5 per cent increase in its asset base last year, driven by investments in future-focused sectors, including artificial intelligence, health care and advanced manufacturing.
Mubadala’s total assets under management in 2024 reached Dh1.2 trillion ($326 billion), with annualised returns of 10.1 per cent over five years, the company said in its annual report in May. Revenue from investments and asset disposals also increased by 10 per cent year on year to reach Dh109 billion.
The company invests across sectors including life sciences, technology, healthcare, mobility and real estate. It is one of the biggest global investors in green energy and advanced technology.
Techem has more than 440,000 clients in 18 countries. It specialises in solutions for energy efficiency that reduce consumption, costs and carbon emissions through low-investment and non-invasive methods.
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Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
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Benefits of first-time home buyers' scheme
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- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
