US-based private equity firm Apollo Global Management has acquired a 11.1% strategic equity stake in Aldar Investment Properties (AIP), a subsidiary of UAE-based Aldar Properties, for $400 million.

The transaction involved the issuance $400 million of common equity and mandatory convertible preferred equity at 100% of net asset value (NAV) into AIP, the Abu Dhabi Securities Exchange-listed developer said in a bourse disclosure.

The completion of the equity transaction follows the issuance by AIP in March 2022 of $500 million in subordinated perpetual notes to Apollo priced at a coupon of 5.625%.

This investment is part of the New York Stock Exchange-listed Apollo’s plans to invest $1.4 billion in Aldar.   

Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, said the investment comes at a time when the company is building significant scale, diversification, and synergies across the region. 

Aldar has deployed and committed over $3 billion of capital this year as part of its strategy for transformational growth, including over AED 7 billion ($1.9 billion) in recurring income assets.

(Writing by Brinda Darasha; editing by Seban Scaria)