Even with oil turbulence causing mass stock selloffs, Abu Dhabi's oil-dependent sovereign wealth fund is staying true to its heavy US real estate commitment.
“The US has benefited from being a safe haven and a very attractive investment market," Tom Arnold, the Abu Dhabi Investment Authority's US real estate head, tells Bloomberg.
The fund sees US real estate (the world's safe deposit box) as the place to hide its funds from global turmoil, Arnold says. He explains that when you were built "when oil was $15 to $20 a barrel”—with plenty of cash to boot—nothing really changes in your strategy.
ADIA is already a major investor in US commercial real estate, with investments in two future Times Square hotels, as well as in the cities of Atlanta, Dallas, Austin and Memphis.
A further reduction in oil prices—around $30 a barrel—"will affect the amount of incremental new capital that comes in," but the fund's strategy remains the same.
Despite Arnold's bullishness on US real estate, others fear falling commodities prices could lead to further trouble in equity markets and potentially cause a new financial crisis. [Bloomberg]
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