Aldar to buy Dh3.7B worth of Saadiyat Island assets
abu dhabi — Aldar Properties on Monday announced that it reached an agreement with Abu Dhabi master developer Tourism Development and Investment Company (TDIC) to acquire a portfolio of real estate assets worth Dh3.7 billion.
This is considered to be one of the largest real estate acquisitions in the country and expected to be completed by end of June.
Aldar, Ferrari theme-park builder, has acquired assets in key destinations, with a focus on Saadiyat Island, home to the Louvre Abu Dhabi. The deal includes 14 operating assets in hospitality, retail, residential, education and infrastructure, in addition to a selection
The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought-after destinations in the world Talal Al Dhiyebi, CEO of Aldar Properties
of land plots and projects under development on Saadiyat Island.
The operating assets being acquired include Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf & Spa and other community retail and leisure assets, and will deliver an incremental net operating income of approximately Dh120 million to Aldar’s asset management portfolio on an annualised basis.
“Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio. The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought-after destinations in the world,” Talal Al Dhiyebi, CEO of Aldar Properties, said.
The value of Saadiyat Island was more recently reinforced by the opening last year of the Louvre Abu Dhabi; and with Saadiyat Island’s cultural district to be extended further through the development in the coming years of the Zayed National Museum and Guggenheim Abu Dhabi, the growth opportunities on offer are very clear.
“We believe this acquisition will further advance Abu Dhabi’s real estate sector and accelerate the development of Saadiyat Island, taking it to the next level,” the CEO added in the statement.
The acquisition of TDIC’s operating assets will enhance Aldar’s highquality asset management business with an additional stream of recurring revenue. The acquisition of the land and projects under development will form part of Aldar’s development destination strategy.
The gross development value of the projects under development on Saadiyat Island is Dh2.5 billion. The land being acquired is located on Saadiyat Island, is infrastructure-enabled and includes approximately 1.1 million square metres of gross floor area. “The continued pace of consolidation via alliances and/or acquisitions continues to gather pace in the UAE real estate market. What it does is ensure greater visibility of supply and for developers, it allows greater flexibility of managing the supply pipeline,” Hussain Alladin, head of IR and research at Global Capital Partners, told Khaleej Times.