New target of 2.2 billion dirhams Net Operating Income (NOI) by 2020.
ABU DHABI, UAE, 19 JANUARY 2016: Aldar Properties PJSC ("Aldar" or the "Company"), 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 sqm 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 900 million dirhams of investment, representing almost 30% of this programme, through the Daman House transaction, the forthcoming extension of Al Jimi Mall in Al Ain and the expansion within Aldar Acadamies through the construction of the Al Mamoura School in Abu Dhabi, announced in November 2015.
The 410 million dirham extension of Al Jimi Mall will bring an additional 33,000 sqm GLA of retail space to the existing 43,000 sqm 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 in January 2016.
The Al Mamoura school will be a co-educational primary school and a girls only secondary school. A total of 160 million dirhams 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 90 million dirhams 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.
The acquisition underscores our ability to successfully execute against our strategy to grow recurring revenues. I firmly believe that our sound financial position, strong capital structure and proven asset management capabilities will allow us meet our NOI target of 2.2 billion dirhams in NOI by 2020."
For further information, please contact:
Investor Relations:
Chris Wilson
Aldar Properties
+971 2 810 5555
Media:
Archie Berens
Bell Pottinger
+971 5555 97407
About Aldar
Aldar Properties PJSC is the leading real estate developer in Abu Dhabi with USD10 billion in assets, a 75 million sq. m land bank, and through its iconic developments, it is one of the most well known in the United Arab Emirates, and wider Middle East region.
From its beginnings in 2005 through to today, Aldar continues to shape and enhance the urban fabric of the UAE's Capital City in addition to other key areas of the Emirate.
Aldar develops exciting and innovative projects, such as the internationally recognized HQ building situated in the Al Raha Beach development, the Gate Towers in Shams Abu Dhabi on Al Reem Island, in addition to Yas Island's F1 circuit.
Aldar's shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar operates according to high standards of corporate governance and is committed to operating a long term and sustainable business in order to provide ongoing value for its shareholders.
Aldar seeks to create quality, comfortable, desirable destinations that enrich the lives of Abu Dhabi residents as well as tourists within the Emirate. Aldar is playing a leading role in the development and provision of world class retail - Yas Mall, international standard education through Aldar Academies, iconic entertainment venues such as the Yas Marina Circuit, and community amenities across its entire portfolio.
Aldar is driven by a vision to be the most trusted and recognized real estate lifestyle developer in Abu Dhabi and beyond.
© Press Release 2016
