Aldar Properties attracts $1.4 billion in strategic capital from Apollo-managed funds and client investments through a landmark commitment signed with Apollo Global Management to drive the former’s transformational growth initiatives.
The $500 million land joint venture will allow Aldar to realize long-term value tied up in its vast land bank, whilst maintaining flexibility to develop or sell the land as per Aldar’s long-term development strategy.
As part of the deal, Apollo will take a direct minority stake in Aldar Investment Properties at its net asset value, highlighting the underlying strength of its asset base and Apollo’s conviction in the company’s growth strategy, management capabilities, and ability to capitalize on accretive opportunities that lie ahead. Aldar Investment Properties is rated Baa1 by Moody’s, the highest credit rating for a non-government corporate in the region.
This investment, for both Aldar Investment Properties and Aldar Group, demonstrates the company’s ability to attract institutional capital into its real estate platforms. It also showcases an ability for Aldar and Apollo to execute innovative, diverse capital solutions as evidenced by Aldar’s first-ever issuance of perpetual subordinated notes and the largest hybrid private placement in the Mena region with the longest non-call period.
Talal Al Dhiyebi, group chief executive officer at Aldar Properties, said: “This landmark transaction is a signal to the world’s investment community that Abu Dhabi’s real estate market is on a growth trajectory, supported by significant economic and social reforms, and a world-leading response to Covid-19. Aldar’s ability to attract a long-term partner such as Apollo underscores the strength of Aldar’s business franchise, as well as the quality and investment appeal of the Abu Dhabi real estate market, both of which are driven by robust fundamentals underpinning long-term economic growth.”
The transaction follows the successful social and economic reforms that have been implemented by the Abu Dhabi Government that have enhanced the Emirate’s appeal and attractiveness as a go-to and leading investment destination for institutional and international investors such as Apollo. The strategic and long-term outlook of Apollo’s investment endorses both the fundamentals of the Abu Dhabi real estate market and Aldar as a platform for excellence and continued growth. The long-term deal, which will see Apollo and Aldar look at further opportunities in the future, will enable Aldar to accelerate and press forward with its transformational growth agenda.
As a result of the transaction, which is expected to close by the end of Q1 2022, Aldar will receive significant cash proceeds that are earmarked to drive our transformational growth agenda as we look to accelerate the effective deployment of capital across our robust pipeline of development and value investment opportunities.
Jassem Busaibe, chief executive officer at Aldar Investment, said: “Diversifying our investor base and establishing partnerships is a key tenet of our growth strategy and is essential in enabling us to build scale, enhance asset diversification, and drive earnings growth. We wholeheartedly welcome Apollo as a long-term strategic investor and look forward to collaborating in order to grow our portfolio through additional value and yield accretive acquisitions. This transaction enables us to add further scale to our business and forms a critical milestone of our upcoming growth journey.”
This investment established Apollo’s new commitment to Abu Dhabi and the UAE after the 2020 strategic partnership with Mubadala Investment Company and the long-term joint venture with Adnoc where Apollo funds and clients led a $2.7 billion investment in real estate JV. Hence, the firm plans to continue expanding its investments and partnerships across the UAE with the provision of support for Aldar’s transformational growth agenda, resulting in a highly attractive, long-term yield.
