Abu Dhabi based property development, investment and management company, Aldar Properties, has announced the creation of Aldar Investment Properties LLC (Aldar Investments), the region’s largest diversified real estate investment company. This follows the recent Abu Dhabi Executive Council Decree, extending full onshore real estate ownership rights to Aldar Properties and its subsidiaries in Abu Dhabi. 

The company will take ownership of some of Abu Dhabi’s highest quality, revenue-generating real estate assets, valued at AED 20 billion (US$ 5.4 billion). These include some of Abu Dhabi’s most recognized assets such as Yas Mall, Aldar HQ and The Gate Towers & Arc, and over 2,400 hotel keys, over 5,000 residential units and over 500,000 sqm of prime retail and commercial space, Aldar said in a statement.

At a glance:

• Creation of Aldar Investment follows government decree enabling asset ownership by Aldar.
• The company will take ownership of AED 20 billion of revenue generating assets. 
• Aldar Investment will raise capital independently of Aldar Properties.
• Moody’s assigns Baa1 rating to Aldar Investments, the region’s highest non-government corporate credit rating.

Aldar Investments, currently a 100% owned subsidiary of Aldar, is designed to drive greater operational and capital efficiencies that will unlock value for shareholders and create the foundation for a new phase of accelerated growth.
 
As an immediate endorsement of its financial strength, Aldar Investments has been assigned a Baa1 rating by Moody’s – the highest rating for a non-government corporate in the region and one notch above Aldar Properties. Aldar Investments can access capital on more favourable terms, independently of Aldar Properties.
 
Commenting, Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties said, “Since its establishment in 2004, Aldar has made significant contributions to the development and maturation of Abu Dhabi’s real estate industry, developing and managing some of the Emirate’s most iconic properties. Today, it is an honour to announce another significant milestone in Aldar’s history, the launch of Aldar Investments - the region’s largest diversified real estate asset investment company. As the owner of AED 20 billion of prime real estate assets, Aldar Investments provides an opportunity for investors to benefit from Abu Dhabi’s AA-rated economy.”
 
The creation of Aldar Investments allows Aldar to spin off its recurring-revenue assets into a 100%-owned separate entity, with greater independence, focused governance and a more efficient cost structure. Aldar Investments operates under the direction of its own board, allowing greater transparency, governance and clarity around its cash flows, profit and dividends while reducing operating and capital costs to enhance profitability.
 
Aldar Investments’ strategy is to deliver attractive returns to shareholders through investing in a diversified portfolio of real estate assets in UAE. It will achieve this by maximising the performance and value of its portfolio, pursuing investment opportunities by acquiring income-producing assets, and redeploying capital in higher-yielding assets where it can drive value, Aldar said in a statement.
 
"Aldar Investments allows us to accelerate growth opportunities and unlock value for shareholders. It is the latest of a series of initiatives that demonstrates Aldar’s leading role in Abu Dhabi’s real estate industry and builds on significant milestones including the strategic partnership with Emaar and acquisition of assets from TDIC,” said Talal Al Dhiyebi, Chief Executive Officer of Aldar. 
 
The creation of Aldar Investments coincides with the government of Abu Dhabi’s commitment to energising the economy through the recently announced 50-billion-dirham economic stimulus package. This is set to make Abu Dhabi more attractive by accelerating the economy, providing further momentum in the UAE’s capital and making business easier.

Source: Aldar Properties.

See also:

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