Abu Dhabi's biggest developer seeking large real estate investment deals

Published Fri, Nov 5, 2021 · 05:50 AM

Dubai

ALDAR Properties has built up a cash war chest and is "actively" considering investments in large real estate portfolios as Abu Dhabi's biggest developer seeks to grow its management business, a senior executive said.

The company, armed with 6.8 billion dirhams (S$2.5 billion) in capital, has the resources to make purchases both in its home market and around the United Arab Emirates (UAE), chief financial officer Greg Fewer said on a conference call on Wednesday (Nov 3).

With holdings spanning retail, commercial, residential and school properties, "those are the sectors where we see very interesting acquisition opportunities within Abu Dhabi and the UAE to scale all those different segments", Fewer said, without naming a likely target.

Aldar, which primarily operates in Abu Dhabi, has been chasing growth in a cramped market.

At home, the company is growing its management business after acquiring Asteco Property Management last year.

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Beyond the UAE, it's also looking to gain a foothold in Egypt through a proposed acquisition of a majority stake in a developer known as Sodic.

"We have got a rich pipeline of opportunities across all the areas that we're focused on - UAE real estate, Egyptian opportunities as well as Saudi opportunities," Fewer said.

The company is targeting real estate portfolios that are for the most part either owned by large families or zoned near government entities, he said.

With the UAE property market on the upswing, Aldar is vying for the status of the most valuable listed developer in the country with Dubai's Emaar Properties.

Both are currently worth about US$9.2 billion.

Aldar sees "great acquisition" opportunities within retail, commercial, logistics and residential assets, the CFO said.

In September, it submitted a US$453 million offer for a stake of up to 90 per cent in Egypt's Sixth of October for Development & Investment Co.

Fewer said the proposal is pending the regulator's approval, with a response expected within "days or weeks".

Aldar, meanwhile, is planning a significant drive to boost the efficiency of the buildings it operates in Abu Dhabi. It has conducted a study that will aim to upgrade some energy-consuming systems with newer and more efficient technology, the CFO said.

The company is focusing on cooling, heat pumps, lights and other building-management systems, he said, without elaborating on the cost or timeline of that plan. BLOOMBERG

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