Alpha Dhabi ups stake in Aldar, becomes single largest shareholder and parent company

Alpha Dhabi Holding has increased its stake in Aldar Properties, strengthening its role as the single largest shareholder in addition to becoming Aldar’s parent company.

With this move, Alpha Dhabi has expanded its shareholding of Aldar, to complement its existing majority representation on Aldar’s board of directors.

Aldar will be treated as a subsidiary in Alpha Dhabi’s consolidated financial statements, the impact of which will be reflected in its financial results for Q2 2022 onwards. The additional shareholding came through the acquisition by Alpha Dhabi of an entity already holding shares in Aldar, which comes after necessary regulatory approvals.

Engineer Hamad Al Ameri, CEO of Alpha Dhabi Holding, commented: “We are firm believers and supporters of Aldar’s equity story, vision and strategy as well as the positive and strong strides it continues to make in growing and scaling its platforms. As a long-term strategic shareholder, Alpha Dhabi will continue to support Aldar’s management team as they execute its transformational growth agenda.”

“The macro-economic environment across the UAE and the region remains strong, supported by a rise in oil prices and with it, sustained economic growth. There have been a number of economic, social and regulatory policies and initiatives that have bolstered the UAE’s status as a premier destination to live, work and visit, thereby increasing the demand for real estate. The result is an in-demand asset class across the UAE, the key market in which Aldar operates, as well as new markets it has recently entered into such as Egypt.”

Focused on growth

Aldar is continuing to deliver strong financial performance and shareholder returns, driven by its diversified asset base. It has entered into new geographies and asset classes, as well as robust organic growth in its core market in the past 12 months. The company recorded its highest-ever annual development sales in 2021, doubling from the previous year’s sales, and has expanded its land bank in the UAE.

Additionally, it entered the Egyptian market and enhanced its UAE diversification through its expansion to Ras Al Khaimah.

Read: Aldar Properties acquires Rixos Bab Al Bahr for Dhs770m, takes total investment in RAK to Dhs1.5bn

The company also made its first entry into the logistics real estate sector with regional expansion plans in place.

Read: Aldar Investment launches logistics real estate vertical

Moreover, Aldar is attracting investment from global leaders like Apollo, which recently invested $1.4bn of strategic growth capital through a monetisation of Aldar’s long-term land bank and equity investments into its flagship investment properties platform. Looking ahead, this funding as well as existing cash and facilities will be deployed to realise the company’s growth ambitions.

In recent news, Alpha Dhabi Holding and International Holding Company (IHC) announced they will invest $50m in California-based aerospace company SpaceX founded by billionaire and Tesla CEO Elon Musk.

Read: Abu Dhabi’s IHC, Alpha Dhabi to invest $50m in Elon Musk’s SpaceX