Aldar Properties is expanding overseas after announcing the $291m acquisition of a London real estate developer.
Aldar Properties has completed the 100 per cent acquisition of London-based developer, London Square, signalling its first international acquisition beyond the MENA region.
The acquisition, representing an enterprise value of AED1.07bn ($291m), is aligned with Aldar’s strategic vision of expanding into key and mature international markets.
Aldar invests in UK real estate
The move is aimed at accelerating growth, diversifying revenue streams, unlocking synergies, and driving cross-selling opportunities.
By exporting its expertise to the UK market through the acquisition of an established and reputable operating platform, Aldar will gain a meaningful foothold in the diverse and dynamic London property market, known for its resilience and enduring appeal to both local and international investors.
The transaction represents a new phase of growth for both entities and will provide two-way benefits, delivering a positive impact for communities and bringing new opportunities to the customers each company serves.
By combining capabilities and talents, the acquisition equally paves the way for a new phase of growth for both entities.
Aldar intends to leverage its expertise and balance sheet to support London Square’s land acquisition strategy to enable it to develop larger and prime central London sites.
Additionally, the transaction is expected to have a positive impact on sales, given the potential for capitalising on cross-selling across both companies’ diverse international customer networks, with Aldar’s development sales during the first 9 months of 2023 totalling AED19.4bn ($5.3bn).
Talal Al Dhiyebi, Group CEO of Aldar Properties said: “Our recently announced international expansion strategy centres on exploring opportunities to acquire or partner with established operating platforms in our target markets.
“The acquisition of London Square represents our first market entry outside of the region, and is a testament to the company’s management team, governance framework, and business model which has consistently delivered strong performance.
“The transaction, which is synergistic in nature, gives us the ability to leverage our mutual strengths, shared values, and common approach to homebuilding to scale London Square while bringing the best of Aldar to bear in the UK’s property market, as we continue to build our foothold outside of the region.”
Adam Lawrence, Founder and Chief Executive of London Square said: “This is an outstanding outcome for London Square. Aldar is an exemplary company with an unrivalled reputation and their strength and breadth of knowledge and experience will enable London Square to flourish and extend its presence across Greater London and the Southeast.”
Since its establishment in 2010, London Square has successfully created a development pipeline worth over GBP2bn ($2.5bn).
London Square has completed more than 3,500 homes to date and has a pipeline of 930 homes under construction, valued at GBP425m ($538m).
Its notable development projects include the London Square Nine Elms development, strategically located in close proximity to the iconic Battersea Power Station.
This flagship project features more than 750 luxury homes, affordable housing, rental apartments, and a substantial 21,500 square feet of commercial and retail space at the heart of central London’s largest regeneration area.
London Square operates numerous segments across its business, enabling Aldar to diversify its development and portfolio exposure into new areas of strategic focus.
This includes its core private for sale division, London Square Developments, which creates high-quality homes and new communities within Greater London.
The United Kingdom, and London in particular, remains a global hub and a strong real estate market, presenting an attractive entry point for Aldar.
There is significant value on offer with the market characterised by a structural undersupply of new homes, enabling Aldar to execute its long-term investment strategy for sustained value creation.
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