Mubadala Development Co. has agreed to acquire a 24.9% stake in The John Buck Co., an employee-owned Chicago-based real estate services company. No financial terms were disclosed. The investment follows the March signing of a joint venture between the two firms.
The John Buck Company (JBC) announced today that Mubadala Development Company PJSC (Mubadala), a leading business development and investment company headquartered in Abu Dhabi, United Arab Emirates, has acquired, through one of its affiliates, a 24.9 percent interest in the privately held, Chicago-based real estate company.
The investment follows the establishment in March 2008 of John Buck International, an Abu Dhabi-based joint venture formed by the two firms. John Buck International is responsible for the development of Sowwah Island and Sowwah Square, the core of the Central Business District in the capital city of Abu Dhabi.
Wholly-owned by the Government of Abu Dhabi, Mubadala has a multi-billion-dollar investment portfolio with commercial initiatives that cross many industry sectors. Through its investment and development activities, Mubadala is helping to create a diverse economy in the Emirate.
The JBC acquisition is part of Mubadala’s expanding real estate and hospitality portfolio, which includes a 17% interest in Aldar Properties, Abu Dhabi’s largest real estate development company; stakes in New York-based Related Companies; the Kor Hotel Group, a privately held hotel management company; and Capitala, an Abu Dhabi-based joint venture with Southeast Asia’s largest real estate group, CapitaLand.
Earlier this year, Mubadala also announced a multi-faceted relationship with GE, the international technology, media and financial services company and an increased stake in microprocessor designer and manufacturer, Advanced Micro Devices.
“We’re delighted that Mubadala has taken an equity stake in The John Buck Company,” said John Buck, Chairman and Chief Executive Officer of The John Buck Company. “We’re looking forward to the enhanced opportunity to strengthen ties with this innovative, world-class investor, and we also see increased potential for cooperation on new projects together.”
“This investment provides us with access to the U.S. real estate market in multiple product types and it complements the existing joint venture we have together,” said Waleed Al Mokarrab Al Muhairi, Chief Operating Officer of Mubadala. “The John Buck Company has an outstanding track record as an integrated real estate services company. Our investment will allow us to co-invest with them in future opportunities and supports our objective of achieving world-class returns through partnerships with industry-leading companies.”
About Mubadala Development Company
Mubadala Development Company (Mubadala) is a Public Joint Stock Company headquartered in Abu Dhabi, capital of the United Arab Emirates. Its focus is on developing and managing an extensive and economically diverse portfolio of commercial initiatives. It does this either independently or in partnership with leading international organizations. Mubadala’s commercial strategy is fundamentally built on long-term capital-intensive investments that deliver strong financial returns.
The company manages a multi-billion dollar portfolio of local, regional, and international investments, projects and initiatives. Through its investment and development projects, Mubadala is both a catalyst for, and a reflection of, the drive for economic diversification of the Emirate of Abu Dhabi. Its impact is evident domestically and internationally in sectors such as energy, aerospace, real estate, healthcare, technology, infrastructure, and services.
Mubadala’s sole shareholder is the Government of the Emirate of Abu Dhabi. For more information about Mubadala, its partnerships and activities please visit www.mubadala.ae.
About The John Buck Company
The John Buck Company (JBC) is an employee-owned firm established in Chicago, Ill, in 1981 as a corporate real estate services firm addressing the real estate requirements of corporations, institutions and professional services firms. Today it offers clients a comprehensive level of service that vertically integrates the key disciplines of real estate within one primary source; development and construction management, tenant advisory, asset management and leasing and asset acquisition, disposition and capital financing. Early on, JBC was one of Chicago’s premier office developers, but in more recent years its development activities have included mixed-use, residential, retail, hotel and public sector projects.
The expertise JBC gained in the capital markets and in the joint-venture structuring of these deals, alongside its real estate operating company platform, led it to launch three Opportunity Funds and a distressed Debt Fund, allowing institutions and high-net-worth individuals to access JBC’s acquisition and development expertise as side-by-side investors.
Since its inception, The John Buck Company has entered into $10.5 billion in real estate capital, has developed or redeveloped 34 million square feet of office, mixed-use, residential and hotel projects and currently manages upwards of six million square feet. JBC currently owns, manages or is developing real estate properties in Chicago, New York, Washington, D.C. and Abu Dhabi. For more information, please visit www.tjbc.com.