Apollo Global Management has agreed to invest $1.4 billion in Abu Dhabi-based Aldar Properties, as private equity extends its big bet on the real estate sector.

The deal breaks down into four separate components:

• A $500 million investment in a joint land venture

• A $500 million investment of perpetual subordinated notes issued by Aldar Investment Properties

• A $300 million mandatory convertible preferred equity investment in Aldar Investment Properties

• A $100 million common equity investment in Aldar Investment Properties

The transaction, which will see Apollo acquire a minority stake in Aldar Investment Properties, comes as PE firms continue to achieve high returns on their real estate investments.

Earlier this month, KKR reported that real estate made up its largest holding after private equity, with the firm completing $4 billion in new investments through its real estate platform last quarter.

Also this month, The Carlyle Group reported its real estate investments significantly outperformed its PE investments in Q4, with returns of 11% and 6%, respectively. And in January, Blackstone reported its real estate investments climbed 19.2%, while its PE investments rose 4.8%.

When it comes to deal size, Apollo's investment in Aldar ranks among PE's largest buyouts in the United Arab Emirates in recent memory. Here's a look at several notable deals in the country since the beginning of 2021:
 

Featured image by Igor Shaposhnikov/Getty Images

This article originally appeared on PitchBook News