New entity is the largest diversified real estate investment company in the region
Aldar Properties, the UAE-based real estate developer, has announced the launch of Aldar Investment Properties, the largest diversified real estate investment company in the region.
In a statement, the developer said the new entity has been mainly designed to ‘drive greater operational and capital efficiencies that will unlock value for shareholders and create the foundation for a new phase of accelerated growth’.
The announcement comes in the wake of the recent Abu Dhabi Executive Council decree, which extended full onshore real estate ownership rights to Aldar Properties and its subsidiaries in the emirate. The company will thus take ownership of some of Abu Dhabi’s highest quality, revenue-generating real estate assets, valued at $5.4 billion.
By creating Aldar Investments, the parent company will be allowed to spin off its recurring-revenue assets into a 100%-owned separate entity, with greater independence, focused governance and a more efficient cost structure, the statement added.
Aldar Investments will operate under the direction of its own board, thereby allowing greater transparency, governance and clarity around its cash flows, profit and dividends, while also reducing operating and capital costs to enhance profitability, it explained.
The new entity has been incorporated through Abu Dhabi’s international financial centre, Abu Dhabi Global Market (ADGM) and features attractive recurring revenue assets, including more than 5,p000 residential units and more than 500,000sqm of prime retail and commercial space.
The Emirati developer said that these assets include some of Abu Dhabi’s most recognisable developments, such as Yas Mall, Aldar HQ and The Gate Towers and Arc, along with more than 2,400 hotel keys – predominantly on Yas Island.
“Since its establishment in 2004, Aldar has made significant contributions to the development and maturation of Abu Dhabi’s real estate industry, developing and managing some of the emirate’s most iconic properties,” said Mohamed Khalifa Al Mubarak, chairman of the board of Aldar Properties.
“Today, it is an hoour to announce another significant milestone in Aldar’s history, the launch of Aldar Investments – the region’s largest diversified real estate asset investment company. As the owner of $5.44 billion of prime real estate assets, Aldar Investments provides an opportunity for investors to benefit from Abu Dhabi’s AA rated economy,” he added.
Aldar Investments’ strategy is to deliver attractive returns to shareholders through investing in a diversified portfolio of real estate assets across the UAE, he explained.
“It will achieve this by maximising the performance and value of its portfolio, pursuing investment opportunities by acquiring income producing assets, and redeploying capital in higher yielding assets where it can drive value. Aldar Investments will actively assess opportunities to expand its asset base beyond traditional real estate asset classes to ensure it leverages key real estate market trends.”
In an immediate endorsement of its financial strength, the newly-formed entity has been assigned a Baa1 rating by Moody’s – the highest rating a non-government corporate in the region, and one notch above Aldar.
“Aldar Investments allows us to accelerate growth opportunities and unlock value for shareholders. It is the latest of a series of initiatives that demonstrates Aldar’s leading role in Abu Dhabi’s real estate industry and builds on significant milestones including the strategic partnership with Emaar and acquisition of assets from TDIC,” said Talal Al Dhiyebi, CEO of Aldar Properties.
“Building on this positive momentum and the maturity of our portfolio, we have now created a highly attractive real estate investment vehicle. We believe Abu Dhabi’s real estate industry offers a compelling investment case, bolstered by a strong macroeconomic backdrop, commitment to growth and attractive real estate yields,” he noted.
Ahmed Al Sayegh, the chairman of ADGM, added that the launch of Aldar Investments marked a ‘milestone for Abu Dhabi’s investment sector and strengthened the UAE and wider region’s progresses towards economic diversification and growth.
“We are delighted that ADGM is continuing to be utilised not only as a platform for international business, but also to support our domestic businesses in their ongoing development and expansion,” he said.
In its statement, Aldar pointed out that the creation of the investment firm comes at a time when the Abu Dhabi government is demonstrating its commitment to adding fresh impetus into the economy – through a recently announced $13.6 billion economic stimulus package, which is set to make Abu Dhabi even more attractive by accelerating its economy and providing further momentum in the UAE’s capital, while also making business easier, it added.