Mubadala Investment Company, an Abu Dhabi-based sovereign investor, and Barings, one of the world’s leading investment managers, and subsidiary of MassMutual, today (December 15) announced the launch of a new $500 million global real estate debt partnership.

As per the deal, Mubadala will be investing alongside MassMutual, and the joint venture will be managed by Barings, said the Abu Dhabi group in a statement.

The joint venture will combine Barings’ extensive expertise in real estate debt with Mubadala’s global investment platform to deliver innovative credit solutions across the US, Europe, and Asia-Pacific.

This partnership, which builds upon a long-standing strategic relationship between Mubadala and Barings, aims to further diversify Mubadala’s real estate debt portfolio, and strengthen Barings’ position as one of the world's largest diversified real estate investment managers.

The new partnership will focus on investing in senior and subordinated real estate loans across real estate asset classes, said the statement.

The joint venture will benefit from Barings’ platform of over $30 billion in real estate debt assets under management, strong performance, and a global footprint, it added.

Omar Eraiqaat, the Deputy CEO, Credit and Special Situations at Mubadala, said: "We are excited to grow our relationship with MassMutual and Barings with the launch of this new joint venture. Their impressive track record, robust origination, and strong portfolio management capabilities complement Mubadala’s existing investment strategy and enables us to further access high-quality opportunities in global real estate credit markets."

"Together, we are well-positioned to capitalize on market opportunities going forward, providing creative financing solutions that deliver resilient, long-term value to our stakeholders," he stated.

Mike Freno, Chairman & CEO, Barings, said: "We are pleased to strengthen our partnership with Mubadala through this milestone venture. By combining Barings’ decades of experience in credit markets with Mubadala’s world-class investment platform, we are forging a powerful alliance built on collaboration and shared vision."

"This joint effort positions us to deliver innovative financing solutions across key global regions and seize the opportunities created by market dislocation. Together, we are excited to create resilient, long-term value for our clients and stakeholders," he added.

The partnership comes at a time of significant opportunity in global real estate markets, driven by bank retrenchment, refinancing demands, and a growing appetite for private credit.-TradeArabia News Service