Abu Dhabi's biggest developers had their share-price estimates cut on drop in emirate's housing prices
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.
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.
Expect another bailout this April. Aldar will survive!