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ADNIC ventures into property development sector

ABU DHABI — The Abu Dhabi National Insurance Company, or ADNIC, has announced its plan to enter the property development sector with the signing of an agreement with Aldar Properties to develop part of Al Raha Beach.

As per the agreement, ADNIC will be the first sub-developer in Al Raha Beach, Aldar’s waterfront development, which includes a mix of residential communities as well as business, retail and leisure.

The agreement is part of Aldar’s long-standing strategy to allocate portions of the Al Raha Beach land bank to third parties for development, the release said.

ADNIC will develop two plots in the Khor Al Raha precinct, a 16,465-square metre office building and an adjoining residential residence containing 198 apartments. The two sites are located near to Aldar’s Al Zeina residential community and are due to be delivered in 2012, the release said.

“ADNIC is delighted to enter into this agreement with Aldar to develop such a prestigious office building and residential complex, the release said quoting Walid Sidani, ADNIC Chief Executive Officer.

“This will also help ADNIC play a greater role in the development of Abu-Dhabi’s pristine water front, which is in line with the leadership’s 2030 vision.”

Replying to questions from Khaleej Times, Sidani said, “Essentially, ADNIC continues to be focusing on Insurance as its core business. At the same time, we believe in the property investment opportunities that Al Raha Beach offers, which is part of our investment strategy and in line with Abu Dhabi Vision 2030. Moreover, ADNIC is well positioned to help further develop this area of Abu Dhabi. We also plan to establish an office of ADNIC once the commercial tower is completed.”

“No additional property investments are being considered at this time. Between the current investment in the Takaful initiative, and the current property development project with ALDAR, these 2 strategic plans will ensure that our capital is optimised efficiently,’’ the ADNIC CEO clarified.

ADNIC, with four branches and ninesatellite offices across the UAE, is a public shareholding company incorporated in Abu Dhabi and is rated A- by S&P with a stable outlook,the release said.

Aldar carried out a full review of ADNIC’s plans to ensure that the development is fully integrated into the Al Raha Beach design and meets the criteria of the Urban Planning Council and Plan Abu Dhabi 2030, as part of the due diligence process.

“Aldar will continue to engage with selected third parties through our major master developments in Abu Dhabi to help meet the market demand.” Aldar Chief Operating Officer Sami Asad said.

ramavarman@khaleejtimes.com