Aldar unit set for investor meetings ahead of new sukuk

Aldar Investment Properties, a fully owned subsidiary of Abu Dhabi’s biggest listed developer Aldar Properties, is commencing a round of fixed-income investor meetings for the issuance of an Islamic bond to repay its $750 million (Dh2.75 billion) existing sukuk.

“The objective of these meetings is to issue a fixed-rate US dollar-denominated sukuk (the New Aldar Investments Sukuk) with a tenure of five to 10 years,” the company said in a statement to Abu Dhabi Securities Exchange, where its shares are traded.

Aldar will meet investors in the Middle East, Europe and Asia it said, without disclosing the size or the timing of the potential sukuk issue, adding that the outcome of the transaction is subject to market conditions.

Earlier this month, the company announced the a Dh20bn spin-off of revenue-generating assets into Aldar Investments, a new entity that will raise capital independently.

About 5,000 residential units and 500,000 square metres of retail and commercial space will be transferred into the new vehicle over the coming weeks, along with Dh6bn of existing debt.

Before the new vehicle was established, Aldar comprised two parts – a real estate development business and an asset management business whose revenues came predominantly from residential and commercial rents.

Aldar is also launching a tender offer for the repayment of $750m sukuk, which is due to mature on December 3 of this year.