By Shane McGinley
Abu Dhabi developer received $5.2bn bailout in Q1, says will not need new state support
The CEO of Aldar Properties said the developer’s company finances are steady and it will not require a second bailout from the Abu Dhabi government.
“We are in a stable condition, I don't think there will be a need [for financial aid],” Aldar Properties’ CEO Sami Asad said at an event in Abu Dhabi. “Financially, we're quite good.”
Abu Dhabi’s largest real-estate developer by market value received a $5.2bn bailout from the government in the first quarter, but managed to return to profit after the sale of assets including the Ferrari World theme park.
The builder of the Yas Marina Formula One circuit posted a first-quarter net profit of AED189.1m ($51.50m) compared with a loss of AED314.2 min the same period last year.
Aldar also issued planned mandatory convertible bonds of AED2.8bn in March to state-owned investment vehicle Mubadala. The company ended the quarter with AED6.2bn in cash and bank balances.
In April, Asad said he did not foresee any further impairments on Aldar’s property portfolio in the near future and said the developer would return to profit in 2011.
A spokesperson from Aldar declined to comment further on Wednesday.