| 22 Jul 2007 |
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Aldar runs half of capital's projects
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July 2007
Aldar Properties is set to control almost 45 per cent of the property supply in Abu Dhabi in the next ten years, according to an estimate on the property development industry in the capital.
The total value of development in Abu Dhabi by all property developers together in the coming 10 years is estimated to be in the region of Dh460 billion and are being developed by the leading seven developers.
Reem Developers, a private real estate development company established in 2004, with Najmat Abu Dhabi as its master developer is building Najmat Abu Dhabi on Al Reem Island next to Sorouh, and Tamouh's developments on the same island.
The other leading developers are Al Qudra Real Estate, a fully owned subsidiary of Al Qudra HoldingAl Qudra Holding
and ManazelManazel, a private joint stock company established in 2006 with a paid-up capital of Dh2.5 billion.The land bank of Aldar Properties, the largest player, is estimated to be about 34.3 million square metres of built up area (BUA). Shuaa estimates that Aldar will use up about 12 million square metres of BUA from its existing land bank by 2011. "This should leave 65 per cent of the current land bank available for revenue generating activities after 2011," said a Shuaa statement.
Aldar had issued convertible bonds worth Dh9.3 billion during the first quarter, this year, and these bonds will mature in the last quarter of 2011. These bonds which are Sharia-compliant are secured against a land, valued at about 120 per cent of the total bond value. These bonds carry a lock-in period of six months, meaning that the lock-in period will go in September 2007.
As per the terms of the bond issue, every $1000 worth certificates can be converted into 645.16 shares of the company at a conversion price of Dh5.7, subject to Aldar Properties' acceptance. The company reserves the option not to accept conversion and instead pay the bond holders in cash at the market value of shares.
By Rajni C
© The Business Weekly 2007
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