By Shane McGinley
State-backed property developer declines to comment on link to poor financial results; board meeting planned for 8 Nov
Aldar Properties, Abu Dhabi’s largest developer, on Monday confirmed the resignation of its CEO, John Bullough.
“Aldar Properties states that CEO John Bullough has announced his long-planned retirement from the company. His replacement will be announced following a board meeting which is scheduled to take place on Monday the 8th of November and a further announcement will be made at this stage,” the real estate company said.
A spokesperson from Aldar told Arabian Business the retirement had planned to coincide with Bullough’s recent 60th birthday.
He declined to comment on whether the CEO’s departure was linked to Aldar’s poor financial performance in recent months.
Bullough’s departure from Aldar, which is 37 percent government owned, follows the deterioration of the company’s accounts over the last year. Aldar reported a net loss of AED789.5m ($214.94m) for the first half of 2010, compared to a net profit of AED1.14bn ($310.37m) for the same period last year.
Aldar's fragile debt position spurred ratings agencies Moody's and Standard and Poor's to each downgrade its ratings earlier in the year and keep it on watch for further downgrades.
Bullough was appointed CEO of the Abu Dhabi-based developer in October 2008. The company last week opened its first Ferrari World theme park on its $5bn Yas Island development.
A chartered surveyor by profession, Bullough had more than 35 years experience in the property development and investment field. He previously oversaw large scale projects in the UK and Ireland and was a past President of the British Council of Shopping Centres.
Undoubtedly, a strong character and consummate professional. It is a shame that the troubled Dubai market has claimed another victim.
Aside from personal expectations, an intrinsic risk with any high profiled job is that of performance. The truth of the matter is that high-profile resignation or force-out will remain unabated until the situation in the region improves significantly.
Resigned or forced out, it does not change the reality that real estate in UAE is going down and will never picked up before 2017, Aldar or Souroh or nakheel or tameer ....etc all of them are suffering.
@Osamo - Aldar is an Adu Dhabi based and owned company, so the Dubai market has nothing to do with this.
However, while their profits may be down, Aldar is delivering, so that's important - it's the real estate market that is down, the other industries and sectors are vastly improved, yes, even banking.
Well, may it be Aldar, UAE or GCC as a whole are not alone in this mess, world turmoil began from the west (as always!), which is giving its rippling impacts across the globe.
Losses of Aldar is not the phenomena of any negative issues with fundamentals of the company, itâ€™s the model that the company is built on. The company has just delivered its 'first' free-hold project (Al Bander) and has more than 40 such projects to be completed/delivered, which will throw-in its cash to improve the liquidity/leverage/profitability/etc in due course of time. I do not understand the panic when it comes to companies rock-solid as Aldar. Though every project has not been completed on time, and that is not the case with Aldar only, thatâ€™s the case with the rest of the world.
It would be appropriate to blame the originator of this disease (the west), rather than the patient (us allâ€¦!)
Why is Aldar still building when it's obvious that there is or soon will be an over supply in the market? Look at the new HQ they built - lovely building but under occupied and a difficult building to split up into smaller units due to the design. The fact that they are now heavily involved in the MASDAR is worrying too - not sure why they have become involved