Follows Government decree enabling asset ownership by Aldar Investments
100% owned subsidiary with AED 20 billion of revenue generating assets
Will raise capital independently of Aldar - intends to issue new sukuk
Moody's assigns Baa1 rating to Aldar Investments, the region's highest non-government corporate credit rating
Abu Dhabi, UAE, 12 September 2018: Aldar Properties PJSC ("Aldar"), Abu Dhabi's leading listed property development, investment and management company, today announces 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).
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.
Incorporated through Abu Dhabi's international financial centre, Abu Dhabi Global Market (ADGM), Aldar Investments features attractive recurring revenue assets including over 5,000 residential units and over 500,000 sqm of prime retail and commercial space. 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, predominantly on Yas Island.
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. Aldar Investments can access capital on more favourable terms, independently of Aldar, and intends to issue a new sukuk in the near term. Aldar Investments has set formal debt and dividend policies consistent with the current asset management business providing further clarity for investors.
Commenting, His Excellency Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties PJSC, 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 Investments will actively assess opportunities to expand its asset base beyond traditional real estate asset classes to ensure it leverages key real estate market trends.
Commenting, Talal Al Dhiyebi, Chief Executive Officer of Aldar, said:
"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. Building on this positive momentum and the maturity of our portfolio, we have now created a highly attractive real estate investment vehicle.. We believe Abu Dhabi's real estate industry offers a compelling investment case, bolstered by a strong macroeconomic backdrop, commitment to growth and attractive real estate yields."
H.E. Ahmed Al Sayegh, Chairman of ADGM said:
"ADGM is pleased to welcome Aldar Investments, the Middle East's largest diversified real estate investment company to its extensive and growing ecosystem. The launch of Aldar Investments marks a milestone for Abu Dhabi's real estate investment sector and strengthens the UAE and wider region's progress towards economic diversification and growth.
We are delighted that ADGM is continuing to be utilised not only as a platform for international business, but also to support our domestic businesses in their ongoing development and expansion."
The creation of Aldar Investments comes at a time when the government of Abu Dhabi is also demonstrating its commitment to adding fresh impetus into the economy through the recently announced 50 billion dirham economic stimulus package. This is set to make Abu Dhabi even more attractive by accelerating the economy, providing further momentum in the UAE's capital and making business easier.