Aldar to buy Dh3.7 billion worth of Saadiyat Island assets

The value of Saadiyat Island was more recently reinforced by the opening last year of the Louvre Abu Dhabi.

Aldar Properties has announced that it has reached agreement with the Tourism Development and Investment Company (TDIC) to acquire a portfolio of real estate assets worth Dh3.7 billion, mostly on Saadiyat Island.

This is considered to be one of the largest real estate acquisitions in the country and expected to be completed by end of June.

This comprises 14 operating assets within hospitality, retail, residential, education and infrastructure, in addition to a selection of prime land plots and projects under development on Saadiyat Island. The operating assets being acquired include Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf & Spa and other community retail and leisure assets.

The gross development value of the projects under development on Saadiyat Island is Dh2.5 billion. The land being acquired is located on Saadiyat Island, is infrastructure-enabled and includes approximately 1.1 million square metres of gross floor area.

Talal Al Dhiyebi, CEO of Aldar Properties, said: "Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio. 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 accelerate the development of Saadiyat Island, taking it to the next level."

The value of Saadiyat Island was more recently reinforced by the opening last year of the Louvre Abu Dhabi; and with Saadiyat Island's cultural district to be extended further through the development in the coming years of the Zayed National Museum and Guggenheim Abu Dhabi, the growth opportunities on offer are very clear.

The acquisition of TDIC's operating assets will enhance Aldar's asset management business with an additional stream of recurring revenue. The acquisition of the land and projects under development will form part of Aldar's development destination strategy.

"The continued pace of consolidation via alliances and/or acquisitions continues to gather pace in the UAE real estate market. What it does is ensure greater visibility of supply and for developers, it allows greater flexibility of managing the supply pipeline," Hussain Alladin, head of IR and research at Global Capital Partners, told Khaleej Times.

- deepthi@khaleejtimes.com