The acquisition by Apollo, through its managed investment arm, of an 11.1% minority stake in Aldar Properties Investment Company, a subsidiary of Aldar Properties, the largest diversified real estate investment company in the region
The Apollo stake forms part of a comprehensive $1.4 billion deal between Aldar Properties and Apollo that was announced in February this year.
The transaction will contribute to the consolidation of the position of Aldar Investments as the largest platform for diversified property investments in the region
Abu Dhabi, United Arab EmiratesThrough its managed investment arm, Apollo acquired a minority stake of 11.1% in Aldar Investment Properties, the largest diversified real estate investment company in the region and a subsidiary of Aldar Properties PJSC. (“Al Dar”)’s headquarters in Abu Dhabi. The completion of the $400 million acquisition is part of a previously announced agreement under which Apollo will invest a total of $1.4 billion in support of Aldar’s transformational growth initiatives.
The transaction included the issuance of mandatory convertible common shares and preferred shares amounting to $400 million to Apollo in Aldar Investment Properties, based on the total net asset value of the company, which represents the real estate investment division of the Aldar Group, which manages a large real estate asset portfolio which differ between assets. Retail, residential, commercial and logistics value for more than 23 billion dirhams (6.3 billion)
US dollar). The company’s diversified portfolio is characterized by its flexibility and ability to adapt to various market conditions, with an occupancy rate of 92% as of June 30, 2022.
This transaction will provide significant financial support to Aldar Investment Properties, enabling it to enhance its efforts to expand the scope of its investments and business by implementing more significant acquisitions. The company has seen rapid expansion this year, and last July it announced a mammoth deal to acquire four premium-class commercial towers in the Abu Dhabi Global Market, the leading international financial center of the Emirate of Abu Dhabi. worth 4.3 billion UAE dirhams (1.2 billion dollars). American).
On this occasion, Talal Al Dhiyebi, CEO of Aldar Properties Group, said: “We welcome Apollo as a strategic investor in Aldar Investment Properties at a time when we continue our efforts to expand our business, the diversification of improve our assets and achieve more integration between the components of the company’s asset portfolio, which is one of The most prominent and leading diversified real estate investment companies in the region, the investment of Apollo, which enjoys a prominent position in the global investment sector, confirms his belief in the feasibility of the transformational growth strategy of the Aldar Group, and will improve the position of the UAE as a whole and the Emirate of Abu Dhabi, especially in light of the remarkable increase seen today in capital flows. Money and long-term investments are, among other things, the biggest institutional investors.
Apollo Co-President Scott Kleinman said: “This transaction provides Apollo with a valuable opportunity to diversify its investment portfolio by partnering in high quality corporate real estate in the UAE through a leading real estate platform. We are confident in the effectiveness of Aldar’s strategy for continued growth and efficiency.”We are also optimistic about the promising prospects of the country’s increasingly active investment climate and the strong economic fundamentals that underpin it.”
The completion of the acquisition comes after Aldar Real Estate Investment Company issued a $500 million subordinated perpetual bond in favor of Apollo in March 2022 at an annual interest rate of 5.625%.
It is noteworthy that this year Aldar has pumped and allocated capital investments of over 11 billion dirhams (US$3 billion) as part of its transformational growth strategy, including the investment of over 7 billion dirhams (US$1.9 billion) in recurring revenue generation from assets.
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For more information, please contact the following numbers:
Obaid Al Yamahi Aldar Properties Company +971 2 810 5555 Sarah Abdel Bari Brunswick Golf +971 4 560 9638 ALDAR@brunswickgroup.com
About Aldar Company
Aldar is a pioneer in the field of property development and management in the UAE as it adopts a diversified and sustainable operating model supported by two main companies, Aldar Development and Aldar Investments.
Aldar Development Company continues its leadership role in developing integrated communities that enrich the lives of residents across the most sought-after destinations in the Emirate of Abu Dhabi, including Yas Island, Saadiyat Island, Al Raha Beach and Al Reem Island . It also owns a land portfolio of 69 million square meters, comprising three business units: Al Dar Enterprises, and will be responsible for managing the fee-based project management business unit, including a portfolio that includes civic housing and key infrastructure projects; Al-Dar for Entrepreneurship, which is in charge of seizing new business opportunities and developing areas of innovation; and Aldar Misr, a platform that focuses on the promising and profitable Egyptian real estate market, as a key market for the development of integrated mixed-use communities.
Aldar Investments comprises the Asset Management Unit of the Aldar Group, which includes a portfolio of AED 30 billion of recurring income producing real estate assets in the retail, residential, commercial and hotel communities. It also manages the three main platforms: Aldar for Education, Aldar Properties and Aldar Hospitality and Leisure. Aldar Education’s platform includes a portfolio of educational assets, including Aldar Academies, a leading educational group in Abu Dhabi with a portfolio of 21 schools and over 27,000 students in addition to a growing network of 3,000 teachers who more than 100 nationalities belong, which adopt a wide variety of the educational curricula and additional services such as the Teacher Training Academy.
While Aldar Properties integrates commercial and residential property operations into the portfolio of “Provis”, a property management company, it also includes community management through an integrated property management platform. Aldar Hospitality and Leisure Company is responsible for overseeing the Aldar’s hotel and leisure asset portfolio, which is primarily located on Yas Island and Saadiyat Island, in addition to Ras Al Khaimah. Aldar’s hotel portfolio includes 13 hotels, with a total of 4,250 hotel rooms, in addition to managing operations across golf courses, beach clubs and marinas.
Aldar’s shares are listed on the Abu Dhabi Securities Exchange (trading code: ALDAR: UH), and the company’s business generates stable recurring profits and income, and has a broad and diversified shareholder base. Aldar accepts the best standards of corporate governance, and is committed to managing sustainable operations over the long term, in order to continuously add value to its shareholders.
Aldar adopts an ambitious vision as it aims to be the most trusted real estate developer and manager in the region, playing a pivotal role in the development of high-quality, comfortable destinations that meet the needs of community members and the ingredients and capabilities which is necessary. for work, life and leisure.