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Tue 9 Mar 2010 10:07 AM

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Aldar sold assets in Yas Island to gov’t for $2.5bn

Assets were sold at book value; no profit recorded in firm’s 2009 financial statement.

Aldar sold assets in Yas Island to gov’t for $2.5bn
RATINGS AGENCY: Last week, Moodys cut Aldars rating to Ba1 from Baa2 with a negative outlook. (ITP Images)

Aldar Properties, Abu Dhabi’s biggest real-estate developer, sold assets on Yas Island to the Abu Dhabi government for AED9.14bn  ($2.5bn), according to a Bloomberg report on Tuesday.

“Certain infrastructure and other property assets on Yas Island were sold to the Abu Dhabi government at a sale price of AED9.14bn,” according to a company statement to the Abu Dhabi bourse.

“These assets were sold at book value and therefore there was no profit recorded in the company’s financial statement for 2009.”

Last week, Moody's cut Aldar's rating to Ba1 from Baa2 with a negative outlook, as part of a downgrade of seven Abu Dhabi-linked companies which it pinned on a lack of explicit state support.

However the company may see its cost of borrowing rise but faces little other impact from the downgrade, a top official said.

Chief Financial Officer Shafqat Malik added the company, Abu Dhabi's biggest property developer by market value, had "no plans at this stage" to borrow this year.

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