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.
Article credit: The National.
