Font Size

- Aa +

Wed 2 Mar 2011 12:45 PM

Font Size

- Aa +

HSBC cuts Sorouh, Aldar price estimates on Abu Dhabi prices

Abu Dhabi's biggest developers had their share-price estimates cut on drop in emirate's housing prices

HSBC cuts Sorouh, Aldar price estimates on Abu Dhabi prices
ESTIMATE CUT: Sorouh Real Estate and Aldar Properties , Abu Dhabi’s biggest developers, had their share-price estimates cut at HSBC Holdings

Sorouh Real Estate and Aldar Properties , Abu Dhabi’s biggest developers, had their share-price estimates cut at HSBC Holdings citing a decline in the sheikhdom’s housing prices.

We are “still waiting for a bottom in the Abu Dhabi real- estate market,” the analysts wrote in a note to investors, saying this year they “expect a 20 percent decline in prices/rents overall.”

HSBC lowered its estimate for Sorouh to AED1.05 from AED1.5 and for Aldar to AED1.35 from AED1.75 . “Aldar looks cheap, but dilution likely to eat into shareholder value,” they said.

Abdalla Hameed 8 years ago

Its time for Aldar to fold, and for Mubadala to take over. With a business model that is heavily reliant on outsourcing; downsized and overburdened with debt; they no longer have the critical talent to add any value to the development food chain.

John Candy 8 years ago

Expect another bailout this April. Aldar will survive!