By Staff writer
Abu Dhabi developer announces first acquisition in bid to grow recurring revenue portfolio
Aldar Properties has announced the activation of a AED3 billion ($816.7 million) investment programme in a bid to drive growth within its recurring revenue business.
The Abu Dhabi developer said it has acquired Daman House, a commercial office building in Capital Centre Abu Dhabi which is fully leased on a long-term contract to a single government related entity.
Aldar said in a statement that the transaction underscores its ambition to grow its recurring revenue portfolio through investment in new and existing revenue producing assets.
The purchase of Daman House is the first to be made as part of a AED3 billion dirham investment programme that Aldar is implementing to drive growth within its recurring revenue business to achieve a target of AED2.2 billion net operating income (NOI) by 2020.
The company said it has already committed approximately AED900 million of investment, representing almost 30 percent of this programme, through the Daman House transaction, the forthcoming extension of Al Jimi Mall in Al Ain and the expansion within Aldar Acadamies through the construction of the Al Mamoura School in Abu Dhabi, announced in November.
It added that the investment into these three assets will contribute approximately AED90 million NOI once they are fully stabilised.
Mohamed Al Mubarak, CEO at Aldar Properties, said: "The acquisition we are announcing today fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take advantage of value accretive opportunities when they arise."