Aldar Properties PJSC, Abu Dhabi’s leading listed property development, investment, and management company, is further strengthening its position in Abu Dhabi’s real estate sector.
It announced that it had reached an agreement with Tourism Development and Investment Company (TDIC) to acquire a portfolio of prime real estate assets worth $1 billion.
This investment is described by Aldar as one of the largest real estate acquisitions in the country’s history.
Aldar agreed to buy 14 operating assets within various sectors ranging from hospitality, retail, residential, education, and infrastructure, in addition to a selection of prime strategic land plots and projects under development on Saadiyat Island.
Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, explained that Aldar’s entry into Saadiyat Island would further accelerate the development of one of the region’s most sought-after destinations.
Increasing the revenues
Aldar’s acquisition is a step of many, in an attempt to achieve growth in Abu Dhabi away from oil dependency, Reuters reported.
“Abu Dhabi has seen some of its largest firms merge in the last two years as part of a strategic review in response to a slump in oil prices since 2014,” according to Reuters.
One of those mergers took place in 2017 when International Petroleum Investment Company (IPIC) was merged with Mubadala Investment Company, a state-owned holding company that can be characterized as a sovereign wealth fund.
The Abu Dhabi Investment Council, an investment arm of the Government of Abu Dhabi, was taken over by Mubadala earlier this year, as well.
Mubadala, being one of the principal shareholders at Aldar, reflects Abu Dhabi’s attempt to increase public sector revenues, Reuters reported.
Aldar’s expected income
Reuters quoted Aldar in a statement saying “the new assets will deliver an incremental net operating income of approximately $32 million per year to Aldar’s Asset Management portfolio.”
The gross development value of the projects under development on Saadiyat Island is $680 million.
The assets being acquired include Eastern Mangroves Complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf and Spa and other community retail and leisure assets.