Abu Dhabi’s Aldar Properties has announced an agreement with the development arm of the emirate’s tourism authority to acquire real estate assets worth Dhs3.7bn ($1bn).
The company said the deal represented one of the largest real estate acquisitions in the country’s history and was mainly focussed on Saadiyat Island.
Aldar is acquiring 14 operating assets in the hospitality, retail, residential, education and infrastructure sectors on top of land plots and projects under development by Tourism Development & Investment Company.
“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,” said Aldar CEO Talal Al Dhiyebi.
“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.”
The acquisition includes the Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf amd Spa and other community retail and leisure assets.
Aldar said they would deliver an incremental net operating income of roughly Dhs120m ($32.67m) a year.
The gross development value of the projects under development that are being acquired is Dhs2.5bn ($680.6m) and the land spans 1.1 million square metres of gross floor area.
The deal is expected to close by the end of June subject to certain conditions.
Aldar is partnering with Dubai developer Emaar on the Saadiyat Grove project at the heart of Saadiyat Island.
Saadiyat Grove includes the recently completed Louvre Museum and other delayed cultural projects including a version of the Guggenheim Museum and a museum dedicated to the UAE’s founder Sheikh Zayed.
The mixed-use development, due to open in 2021, will feature 2,000 residential units, two hotels, 400 serviced apartments and 130,000 square metres of lifestyle and retail space.