Peninsula Real Estate in talks with Abu Dhabi firm over pre-IPO funding

Peninsula Real Estate is in talks with Abu Dhabi investment group Yas Holding to secure funding ahead of a planned initial public offering, according to people familiar with matter.

The listing in Abu Dhabi is likely to be announced in the first half of the year and could raise about $550 million, the people said, asking not to be identified as the information isn’t public.

Details on the size of the potential investment weren’t immediately available. Discussions are ongoing and there’s no certainty they’ll lead to a transaction, the people said.

Representatives for Peninsula and Yas weren’t immediately available for comment.

Peninsula was initially considering listing a real estate investment trust in London, in a deal that would have made it the first company with significant assets in the United Arab Emirates to do so since 2019.

It later abandoned those plans in favor of an offering in Abu Dhabi, attracted in part by the city’s initiatives including a dedicated IPO fund as well as the strength of the local market that’s seen a flurry of listings over the past year. Peninsula also has a partnership with the Abu Dhabi Investment Office.

The firm is working with Emirates NBD PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley on the share sale, Bloomberg reported last year.