Abu Dhabi, UAE — Abu Dhabi-based Mubadala Investment Company and Barings, a MassMutual subsidiary, announced a $500 million global real estate debt partnership on December 15, 2025. The joint venture, managed by Barings, targets senior and subordinated real estate loans across the US, Europe, and Asia-Pacific.
Partnership Details
Mubadala invests alongside MassMutual, leveraging Barings’ $30 billion real estate debt platform. The initiative builds on their long-standing relationship to diversify Mubadala’s portfolio and enhance Barings’ global position.
Omar Eraiqat, Deputy CEO of Credit and Special Situations at Mubadala, said: “We are excited to grow our relationship with MassMutual and Barings with the launch of this new joint venture. Their impressive track record, robust origination, and strong portfolio management capabilities complement Mubadala’s existing investment strategy and enables us to further access high-quality opportunities in global real estate credit markets.”
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Mike Freno, Chairman and CEO of Barings, said: “We are pleased to strengthen our partnership with Mubadala through this milestone venture. By combining Barings’ decades of experience in credit markets with Mubadala’s world-class investment platform, we are forging a powerful alliance built on collaboration and shared vision.” The partnership arrives amid bank retrenchment and $4.5 trillion in maturing commercial real estate debt by 2028, fueling private credit demand.
Global Real Estate Debt Trends
Banks retreated from riskier commercial real estate lending after 2022-2023 rate hikes and stricter regulations, reducing their exposure amid rising delinquencies—now at 7.29% for CMBS loans versus under 1% for bank-held CRE debt. This created a refinancing gap filled by private credit, whose assets under management grew from $1 trillion in 2020 to $1.5 trillion in 2024, projected to reach $2.6-$3 trillion by 2028-2029.
A massive “maturity wall” looms, with $957 billion in US CRE loans due in 2025 alone—nearly triple the 20-year average—followed by peaks of $1.15 trillion in 2027, totaling $3.2-$4 trillion maturing through 2029 from $4.8-$6.1 trillion outstanding. Private funds like the Mubadala-Barings venture target senior and subordinated loans to capitalize on these dislocations, offering flexible solutions where banks hesitate.
Dubai’s equity-driven market benefits indirectly, as UAE sovereign funds like Mubadala deploy global debt expertise to support regional developers facing similar pressures, amid 5-8% price growth forecasts. Indian investors eyeing UAE off-plan properties gain from stabilized financing, though global volatility warrants diversified debt-equity strategies.
Dubai Market Context
Dubai’s off-plan sales dominated 2025, accounting for 65-72% of residential transactions in Q3—up from 63% in 2024—fueled by developers’ flexible payment plans and launches in hotspots like Jumeirah Village Circle and Business Bay. The Dubai Land Department recorded 125,538 total deals in H1 2025 worth AED 431 billion, a 26% volume and 25% value rise from H1 2024, with off-plan comprising over 70% of residential sales in the first seven months (67,955 transactions at AED 195.6 billion).
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Year-to-date through November, sales hit around 300,000+ units exceeding AED 1 trillion cumulatively, with November alone logging 19,019 deals at AED 64.7 billion (up 30.9% YoY) and average prices at AED 1,755 per sq ft (up 16.1%). Indian investors led with 22% market share, rising from 21% in 2024, drawn to 6-10% rental yields—reaching 8-12% in Business Bay for short-term lets—and zero capital gains tax.
Golden Visa reforms enable 10-year residency for AED 2 million+ investments, boosting appeal amid pro-business policies and proximity to India (3-4 hour flights). Business Bay saw 5-8% price growth, with apartments yielding 6-8% and offices AED 1,200-1,500 per sq ft, supported by expat influx and infrastructure like canal upgrades. This resilience positions Dubai as a hedge against global volatility for NRIs under LRS limits.
Implications for Indian Investors
This Mubadala-Barings global real estate debt partnership signals UAE funds’ push into private credit, potentially stabilizing financing for Dubai developments attractive to Indians. Amid 5-8% projected price growth and no capital gains tax, NRIs can leverage Golden Visas via off-plan buys, but should monitor refinancing risks from global trends. Practical steps include partnering with DLD-registered agents and diversifying into mid-luxury segments for 8-15% yields.
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