Abu Properties set up Aldar Investment a $5.4bn Real Estate Giant
Abu Properties set up Aldar Investment a $5.4bn Real Estate Giant. Abu Properties set up Aldar Investment a $5.4bn Real Estate Giant. Aldar Properties, UAE based largest real estate developer announced the launch of subsidiary investment vehicle Aldar Investment Properties, the largest diversified real estate investment company in the region. The developer said that the new entity has been mainly 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’, Aldar said at a launch event at Abu Dhabi Global Market (AGDM), the UAE’s capital’s financial free zone, where the new company will be based.
By creating Aldar Investments, the parent company will be allowed to spin off its recurring-revenue assets into a 100 percent-owned separate entity, with greater independence, focused governance and a more efficient cost structure. The new entity has been incorporated through Abu Dhabi’s international financial centre, Abu Dhabi Global Market (ADGM) and features attractive recurring revenue assets, including more than 5,000 residential units and more than 500,000sqm of prime retail and commercial space which will be transferred into the new vehicle over the coming weeks, along with Dh6bn of existing debt.
The Emirati developer said that these assets include some of Abu Dhabi’s most recognisable developments, such as Yas Mall, Aldar HQ and The Gate Towers and Arc, along with more than 2,400 hotel keys – predominantly on Yas Island – the creation of Aldar Investments, as a fully owned subsidiary will hold property assets valued at 20 billion dirhams ($5.4 billion).
Aldar Investments will operate under the direction of its own board, thereby allowing greater transparency, governance and clarity around its cash flows, profit and dividends, while also reducing operating and capital costs to enhance profitability, it explained. The move is also a boost for ADGM, bringing billions of dollars of assets within its jurisdiction on Al Maryah Island.