Hassana Investment Company (Hassana), the Riyadh-based investment arm of the General Organization for Social Insurance, announced an investment of 9 billion riyals ($2.4 billion) in three assets of the Dubai-based DP World.
Under the agreement, Hassana will hold a stake of about 10.2 percent in Jebel Ali Free Zone and National Industries Park through a new joint venture with DP World, the ports operator said in a statement.
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The investment by Hassana, which manages one of the largest global pension funds, implies a total enterprise value of approximately $23 billion for the three assets, DP World said.
“This new partnership will serve to enhance our assets and allow us to capture the significant growth potential of the wider market,” said Sultan bin Sulayem, group chairman, and chief executive of DP World.
The transaction follows an investment in June by the Canadian fund Caisse de Depot et Placement du Quebec (CDPQ) of $5 billion in the same three DP World UAE assets ― Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park.
The Montreal-based pension fund said it will take a 22 percent stake in the three Dubai-based assets through a new joint venture with DP World.
Other long-term investors will have the opportunity to acquire an additional stake worth up to $3 billion in the joint venture, DP World said at the time.
“Favourable demographics and macroeconomic drivers and investment in transformational projects will continue to support growth momentum regionally, while trade between the emerging economies of Asia and Africa is also expected to thrive,” said Saad bin Abdulmohsen Al-Fadly, chief executive of Hassana Investment.