R.A.C.E - The View From Masdar city

foreign [Music] I am delighted to be here today at this wonderful event to announce a big development for our product Mazda greenrete before I get to the announcement I'd just like to give you all a little bit of a quick background around what Mazda greenrete is we are a adgm qualified investment fund under the private Reit regime in domicile in the adgm with managed by Mazda Capital Management limited which is a regulated entity by the fsra with a category 3C license so I'm sure all of you know what a REITs is but just for those who don't it's a collective of investment properties the income producing in nature and they are allow investors to diversify their Risk by spreading their their risk over a number of assets so Master green Reit was incorporated in December 2020 we were in the heart of the covet pandemic but we were seated with four assets from Mazda city as you heard Mazda city was a um is a master Community Development very well located next to the Abu Dhabi International Airport and what Mazda City Prides itself in is being a Pioneer for sustainability as well as being a hub for Innovation research and development the four first assets that came into the portfolio were the Irina building uh home to the international renewable energy agency and the uh also home to inec the Emirates nuclear energy corporation we also have the Siemens building which is home to Siemens as well as Abu Dhabi customs and the headquarters for the national cooling company to breed the fourth asset in the original portfolio was The Innovation Hub uh or innovation building which houses both Mazda City staff and Mazda free zone among other tenants so why did Mazda City create Mazda green rate well this there's two reasons the first was to offer investors the opportunity to invest in these income producing assets focusing on sustainability at its core focusing on assets situated within Mazda City and in the future potentially within the wider UAE but it also allowed Mass the city to raise Equity from its completed income producing portfolio and potentially redeploy that into future developments of its uh Master City onto the announcement so having a portfolio of just under a billion Dirhams we are very pleased today to announce the acquisition of its second phase of assets valued at 930 million Dirhams uh taking the portfolio to 1.9 billion during [Applause] thank you the new assets that we are requiring include a staff accommodation building with 500 rooms leased to etiod Airways on a 20-year lease and office building leads to Abu Dhabi quality and Conformity Council on a 10-year lease and the headquarters for the Technology Innovation Institute at least on a five-year term these three buildings are all Leeds Platinum certified as well as Esther Dharma 3 Pearl and our original four assets include a lead Platinum certification and other buildings which are in the process of achieving either lead gold or estudana ratings with a minimum Target of lead gold certification across all the assets the other three assets that form parts of this acquisition include a three what we call masato leases they are effectively ground leases where we own the plot of land and a developer has come and built on top of it they're very attractive for a product like a reads because they have a a very long lease and are very secure with the investment that was made on top of the land these three assets house the likes of Honeywell kasner data centers and Ryan International School so in terms of the acquisition this was made through a combination of debts that we secured from fab at 200 million dollar green loan that was secured back in April 2022 and further Equity issuance of equity so what's next for Mazda green reads well we've now got a much larger established portfolio we've got conservative debts attached to it at about 37 percent it boasts a very healthy occupancy 98 and now with these long-term leases included a weighted average unexpired lease term of six years which makes it a very attractive investment proposition so in the near future we will be targeting institutional investors looking for Cornerstone Equity investment to come into this product enjoy exposure to the current portfolio and also grow acquiring pre-identified assets from Mazda City and as I mentioned earlier in the future potentially in The Wider UAE that's all from me thank you very much