Acquisition is focused on Saadiyat Island and includes hospitality, retail and residential assets
In one of the largest real estate acquisitions in the history of the UAE, Aldar Properties has acquired a portfolio of prime real estate assets worth $1 billion (AED3.7bn) from the Tourism Development and Investment Company, Aldar announced on Monday.
The acquisitions include locations in a number of key destinations in Abu Dhabi, with a focus on Saadiyat Island.
The deal is comprised of 14 operating assets within a number of sectors including hospitality, retail, residential and education, as well as a selection of strategic land plots and projects under development on Saadiyat Island.
“Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio,” said Aldar CEO Talal Al Dhiyebi.
“The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought after destinations in the world.”
Al Dhiyebi added that he believes the acquisition will help accelerate the development of the area.
The operating assets being acquired as part of the deal include the Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf & Spa and other community retail and leisure assets, which Aldar expects will deliver an incremental net operating incomes of AED 120 million ($32.6 million) to the company’s asset management portfolio on an annualised basis.
The gross development value of the projects under development on Saadiyat Island is AED 2.5 billion ($680.6 million), while the land being acquired includes 1.1 million square-metres gross floor area.
The acquisition is expected to be fully complete by the end of June.