Abu Dhabi-based Aldar Properties is spinning off its property investment arm to create the region's largest diversified real estate investment company with more than $5.4 billion in assets, the company announced on Wednesday.
The new company – Aldar Investment Properties LLC – will take ownership of some of Abu Dhabi’s highest revenue-generating real estate assets, including more than 5,000 residential units and over 500,000 square-metres of prime retail and commercial space, including Yas Mall and the Gate Towers and Arc.
The announcement follows a recent decree from the government of Abu Dhabi that Aldar subsidiaries can now own property in the emirate.
Aldar Investments has already been assigned a Baa1 rating by Moody’s – above Aldar – which will allow it to access capital on more favourable terms independent of Aldar. Additionally, the company intends to issue a new sukuk in the near future.
The creation of Aldar Investment comes at a time in which Abu Dhabi’s government is attempting to boost the emirate’s economy through a recently announced $13.6 billion (AED 50 billion) stimulus package.
The decision by Aldar Investments, the new company that owns the recurring revenue assets of property giant Aldar, to establish itself in the Abu Dhabi Global Market (ADGM) has been hailed as "a significant milestone" in the local real estate investment space.
ADGM’s chairman, Ahmed Al Sayegh, said that it was "heartening" to see how Aldar is tapping into ADGM’s platform to "take the real estate sector to the next level of maturity and growth".
In this edition of Inside AB, Jeremy Lawrence and Bernd Debusmann look at what this means for Abu Dhabi property and the wider UAE.
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(Source: Arabianbusiness.com YouTube channel)