Abu Dhabi's Aldar acquires $1bln of TDIC assets

Acquisition marks Aldar's entry into Saadiyat Island; expected to be completed by end-June

  
People walk past the headquarters of Aldar Properties at Al Raha Beach in Abu Dhabi.

People walk past the headquarters of Aldar Properties at Al Raha Beach in Abu Dhabi.

REUTERS/Ben Job

Abu Dhabi-headquartered Aldar Properties PJSC announced on Monday it will acquire 3.7 billion UAE dirhams ($1 billion) worth of real estate assets from the state-owned Tourism Development & Investment Company (TDIC).

TDIC is a master developer of major tourism destinations in Abu Dhabi, according to its website.

Aldar said in a press statement the acquisition includes 14 operating assets within sectors ranging from hospitality, retail and residential to education and infrastructure. It also includes prime land plots and projects under development on Saadiyat Island and is expected to be completed by the end of June 2018.

Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said in the statement that the “opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought after destinations in the world. We believe this landmark acquisition will further advance Abu Dhabi’s real estate sector and accelerate the development of Saadiyat Island, taking it to the next level.”

Saadiyat Island’s cultural district will be extended further through the development of the Zayed National Museum and Guggenheim Abu Dhabi in the coming years, the statement noted.

According to the statement, the operating assets being acquired include the Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf & Spa and other community retail and leisure assets that will deliver an incremental net operating income of approximately 120 million dirhams to Aldar’s asset management portfolio on an annualised basis.

It said the gross development value of the projects under development on Saadiyat Island is 2.5 billion dirhams, while land being acquired on Saadiyat Island is infrastructure-enabled and includes approximately 1.1 million square metres gross floor area (GFA).

Last month, the Abu Dhabi developer launched a new $2.72 billion masterplan for the Alghadeer community project located within its Seih Al Sdeirah land bank near the Abu Dhabi-Dubai border.

In March, Reuters reported that Aldar has signed a joint venture agreement with Dubai-headquartered Emaar Properties to develop local and international projects worth as much as $8.2 billion.

The company made net profit attributable to owners of 141 million dirhams in the three months to December 31, 2017 compared with 727.9 million dirhams a year earlier, Reuters reported in February. Aldar's full-year profit attributable to owners was 2 billion dirhams, compared with 2.78 billion dirhams in 2016, it added.

(Writing by Anoop Menon; Editing by Shane McGinley)

(anoop.menon@thomsonreuters.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article 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. Read our full disclaimer policy here.

For more data, analytics, tools and news on projects in the Middle East visit the Thomson Reuters Projects portal

© Thomson Reuters Projects News 2018

More From Real Estate