PHOTO
First major acquisition for Aldar Investments
Jassem Busaibe appointed Aldar Investments CEO
Abu Dhabi: Aldar Investment Properties LLC (“Aldar Investments”) is pleased to announce that it has agreed to acquire full ownership of Etihad Plaza and Etihad Airways Centre in an AED 1.2 billion transaction with Etihad Airways PJSC (“Etihad”). As part of the deal, Etihad will take 100% ownership of Etihad Airways HQ. The three properties were previously held in three 50/50 joint ventures between Aldar Properties PJSC (“Aldar”) and Etihad (“the JV”). The transaction is expected to complete in Q2 2019.
This is the first major transaction for Aldar Investments which launched in September 2018. Aldar Investments is a wholly-owned subsidiary of Aldar and, upon its creation, became the region’s largest diversified real estate investment company. On completion, AED 1.2 billion of investment properties and other assets will be acquired by Aldar Investments in exchange for transfer of full ownership of Etihad HQ to Etihad. As part of the transaction, Aldar will assume existing debt within the Etihad Plaza and Etihad Airways Centre JVs, which will be kept in line with Aldar Investment’s established debt policy to hold 35-40% loan to value.
The deal adds 789 residential units, 17,940 sqm net leasable area (NLA) of office space and 11,000 sqm NLA of retail space to Aldar Investments’ existing high-quality portfolio. Full ownership of these assets will enable Aldar Investments to recognise annualised annual net operating income of AED 0.1 billion, previously reported as a share of profits from the JV. Aldar Investments will also continue to benefit from a strong tenant base with long leases that provide solid visibility of income.
Aldar Investments is also pleased to appoint Jassem Saleh Busaibe as its Chief Executive Officer. In this role, Mr. Busaibe will oversee the implementation of Aldar Investments’ strategy through the active management and growth of its high-quality portfolio.
Jassem Busaibe, Chief Executive Officer of Aldar Investments and Chief Investment Officer of Aldar Properties, commented: “In September, we announced the creation of Aldar Investments to accelerate growth opportunities and unlock value through active management of a diverse portfolio of real estate assets. The acquisition of Etihad Plaza and Etihad Airways Centre allows us to drive value as we take these assets into our larger real estate platform, enabling greater capital efficiency, grow our net operating income and ultimately, free cash flow that can support future dividend growth. The deal continues Aldar’s remarkable start to 2019 and further demonstrates the strength of Abu Dhabi’s real estate market.”
Etihad Plaza is a mid-rise residential development which houses Etihad employees in apartments ranging from one to four bedrooms and is fully leased to Etihad on a long-term lease expiring 2034. It also offers a number of retail units comprising offices and medical facilities for Etihad Airways, and retail and food & beverage units which are leased out to third parties.
Located within one of Aldar’s completed developments in Al Raha Beach, Al Muneera, Etihad Airways Centre comprises predominantly office space and a retail offering. The offices are fully leased to Etihad Airways on a long-term lease expiring 2032. The majority of the ground floor retail units are sublet to retailers such as Carrefour, Jones the Grocer, Style and Smile and Al Wahda Pharmacy, with Etihad Airways occupying the remaining retail space on the ground floor.
This deal builds on a transformational 2018 for Aldar, when the Group completed three strategic corporate actions. In March 2018 Aldar entered into a strategic partnership with Emaar; then in May last year, Aldar acquired AED 3.7 billion of high-quality assets. This was followed in September by the creation of Aldar Investments, the region’s largest diversified real estate investment company.
On 13th February, Aldar released its full year 2018 financial results, reporting a 2% increase in revenue to AED 6.3 billion, and a 3% increase in net operating income from its recurring revenue assets. Aldar’s net profit was AED 1.9 billion, with gross profit of AED 2.6 billion and development sales of AED 2.6 billion. As a result of these solid results, the Board recommended a 14 fils per share dividend for 2018, representing a 17% increase over 2017 and the sixth consecutive year of growth.
-Ends-
For further information, please contact:
Investors:
Chris Wilson
Aldar Properties
+971 2 810 5624
Media:
Nick Farmer /
Obaid Al Yammahi
Aldar Properties
+971 2 810 5555
Emily Hargreaves
Hanover Communications
+971 55 559 7391
For more information on Aldar please visit www.aldar.com or follow us on:
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),. 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 2019Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
