The UAE’s Aldar Properties is set to put its key assets on sale to tackle a cash crunch and analysts say oil-rich Abu Dhabi may step in to help the indebted developer in the absence of many buyers.
Aldar, which is seeking shareholder approval to sell assets and issue convertible bonds, may turn to government-owned entities to buy properties such as the Ferrari theme park, the world’s first park based on the Italian sports car and racing team, analysts say.
“The problem is that there is nobody in the market who would be interested in buying these assets. They have to go to the government,” said a Dubai-based property analyst who did not want to be named.
The Abu Dhabi government owns about 31 percent of Aldar.
The largest developer by market value in Abu Dhabi may also seek to convert debt it issued to Abu Dhabi’s investment fund Mubadala in 2008 into equity, analysts say, lifting the government’s stake to 65 percent.
Assets likely to be sold also include the Yas Hotel.
In November, the company said it was in the final stages of talks with the government over its cash needs.
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