Aldar to acquire four towers in deal worth $1.7bn

Four prime Grade A commercial towers in the Abu Dhabi Global Market (ADGM), which is located on Al Maryah Island, will be acquired by Aldar Properties, following a deal it inked with Mubadala Investment Company.

The deal is valued at $1.7bn and is said to represent one of the largest real estate transactions in the UAE. The towers will be held by Aldar Investment Properties (AIP) and brings Aldar’s total capital deployment into recurring income assets during 2022 to over $1.90bn.

The transaction includes the four main office towers in ADGM – Al Sila, Al Sarab, Al Maqam, and Al Khatem. The towers comprise a total net leasable area of 180,000sqm. Aldar said it will also take ownership of the North and South car parks, which serve the office towers and other mixed-use space.

In February 2022, it was announced that Apollo Group Management would invest $1.4bn in strategic capital into Aldar Properties.

The agreement was signed by Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, and Ali Al Mheiri, Executive Director of UAE Diversified Assets at Mubadala Investment Company. The signing was witnessed by Mohamed Khalifa Al Mubarak, Chairman of Aldar, and Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments at Mubadala Investment Company.

Al Dhiyebi stated, “We continue to be active in pursuit of capital deployment opportunities to expand our portfolio as part of our transformational growth agenda. The office towers at ADGM are non-replicable assets in Abu Dhabi, positioned at the epicentre of the financial district, and allow us to diversify our commercial offering and income streams. Our strong long-term relationship with Mubadala and the strategic nature of the transaction will result in Aldar driving forward ADGM’s position as the most desirable destination in the region for international financial services entities.”

The acquisition is said to position AIP’s portfolio to benefit from the growth prospects of the Grade A commercial office market on Al Maryah Island, particularly in ADGM.

In April, RAK Hospitality sold Rixos Bab Al Bahr Ras Al Khaimah to Aldar Properties for $209.6mn.

In addition to being the master developer of the 116ha Al Maryah Island, Mubadala Investment Company is a founding shareholder in Aldar Properties, currently holding a 25% position.

Al Mheiri added, “Today’s transaction is a milestone in Mubadala’s long history as master developer of Al Maryah Island and the right moment for Mubadala to realise the value of the four grade A towers after nearly a decade of ownership. As the UAE’s largest real estate developer and asset manager, Aldar brings the right operational expertise to enhance Abu Dhabi Global Market’s burgeoning business ecosystem, strengthen its competitiveness, and attract world-class internationally recognised businesses to its thriving community.”

Late in April, the Aldar Group reported net profits of $187.3mn in Q1, 2022.

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