Mohamed Al Qubaisi, executive director of the real estate department at ADIA
The Abu Dhabi Investment Authority has committed capital to a new Asia Pacific real estate credit strategy managed by Hong Kong’s Dignari Capital Partners, as global investors expand into private lending amid tightening bank financing across the region.
The strategy will provide structured credit solutions to developers, construction firms and real estate investors across developed APAC markets, with a particular focus on Hong Kong, ADIA said in a release. Target sectors include residential, office, retail, student housing, serviced apartments, co-living, data centres and logistics.
The latest commitment aligns with ADIA’s strategy of partnering with specialist managers with deep expertise and strong track records, said Mohamed Al Qubaisi, executive director of the real estate department at the Emirati sovereign giant.
“Private credit is becoming an increasingly important source of solutions capital in Hong Kong’s real estate market — providing tailored financing that complements banks and supports borrowers’ needs for speed and certainty of execution,” Al Qubaisi said.
Bridging the Gaps
In Hong Kong, the newly established fund will offer bridging and refinancing loans, as well as capital for value-add initiatives such as student housing conversions and hotel upgrades.
Dignari Capital Partners co-founder and chief investment officer Grace Tan
The strategy is designed to deliver flexible, tailored financing solutions in markets with established legal frameworks and strong creditor protections, according to Dignari, the company led by former ADM Capital partner Grace Tan. Last year, Dignari provided a $115 million private loan to Hong Kong builder Tai Hung Fai to fund construction of an office tower in the island’s Sheung Wan area, Bloomberg reported.
“Following this commitment from ADIA, we anticipate deploying meaningful capital into real estate opportunities across APAC’s developed markets in the near future,” Tan said. “Real estate developers and investors across these markets are seeking refinancing solutions that require fast execution and flexible terms. In such situations, DCP can offer complementary financing solutions to both banks and their clients.”
ADIA’s infusion comes as private credit gains traction in developed APAC markets, where lenders are stepping in to fill funding gaps left by traditional banks. Private equity major KKR has raised $2.5 billion for its latest Asia Pacific private credit vehicle, targeting opportunistic and asset-backed lending opportunities across the region, including real-estate-linked financing.
The trend extends to sector-specific strategies, with ESR launching a $325 million South Korea-focused real estate credit fund in late 2024 to provide structured financing to developers and investors, particularly in transitional or capital-constrained situations. Institutional capital has also flowed into specialist managers, with ADIA backing SC Lowy’s South Korea real estate private credit strategy.
Property Pivot Continues
ADIA’s commitment to Dignari comes as the trillion-dollar sovereign fund rebalances its Asia Pacific portfolio by exiting commercial properties and reallocating capital to alternatives like Vantage Data Centers and industrial specialist GLP.
The last two months saw ADIA sell its half-stake in a Sydney office precinct to fund manager Charter Hall for close to A$500 million ($351 million) and offload a pair of Sydney hotels to Wentworth Capital and Sun Hung Kai & Company for A$390 million.
In February of last year, ADIA and its joint venture partner Hines sold the One Museum Place skyscraper in downtown Shanghai to a fund backed by China Post Insurance in a deal said to value the project at as much as RMB 10.9 billion (then $1.5 billion). ADIA retained a minority stake in the 60-storey tower after previously holding majority ownership in the asset.
In November, ADIA agreed to divest its 70 percent stake in Singapore’s PLQ Mall to Lendlease Global Commercial REIT for S$246.8 million (then $189 million), with the SGX-listed trust’s Aussie sponsor retaining a 30 percent interest. Then December saw ADIA part with its stake in a Surfers Paradise mall and hotel complex in a deal said to value the Queensland property at A$370 million.
The Emirati player is also pushing into the real estate secondaries market, launching a dedicated platform this month with French alternative asset manager Ardian.
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