Aldar activates AED 3 billion investment plan with a commercial asset purchase

ABU DHABI, 19th January, 2016 (WAM) -- Aldar Properties, Abu Dhabi?s leading listed property development, investment and management company, has acquired Daman House, a commercial office building in Capital Centre, Abu Dhabi. Daman House comprises 23,000 sq.m. GLA of Grade A commercial space, fully leased on a long-term contract to a single government related entity.

The transaction underscores Aldar?s ambition to grow its recurring revenue portfolio through investment in new and existing revenue producing assets. The purchase of Daman House is the first to be made as part of a 3 billion Dirham investment programme that Aldar is implementing to drive growth within its recurring revenue business to achieve its new target of 2.2 billion Dirhams Net Operating Income (NOI) by 2020.

The company has already committed approximately AED900 million of investment, representing almost 30 percent of this programme, through the Daman House transaction, the forthcoming extension of Al Jimi Mall in Al Ain and expansion within Aldar Acadamies through the construction of the Al Mamoura School in Abu Dhabi, announced in November, 2015.

The AED 410 million extension of Al Jimi Mall will bring an additional 33,000 sq.m. GLA of retail space to the existing 43,000 sq.m. GLA trading space, as well as a renovation and face lift of the existing mall. Al Jimi Mall remains a key retail asset in Al Ain, with footfall of 8 million visitors a year, and this investment will bring new retailers to Al Ain as well as enhancing the overall shopping experience. Ground-breaking of the new extension is expected to take place later this month.

The Al Mamoura school will be a co-educational primary school and a girls only secondary school. A total of AED160 million will be spent on its construction, which is expected to be completed in 2016. The school is being built in response to continued strong demand for high quality education in Abu Dhabi and will become the seventh school in Aldar?s portfolio.

The investment into these three assets, all of which is being funded out of existing cash resources, will contribute approximately AED90 million NOI once the assets are fully stabilised, with Daman House making an immediate contribution to NOI growth.

Mohamed Al Mubarak, Chief Executive Officer at Aldar Properties, commented, "The acquisition we are announcing today fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take advantage of value accretive opportunities when they arise.