Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed conglomerate International Holding Company, has raised its shareholding in Aldar Properties to become the property developer’s parent company.
The move reaffirms Alpha Dhabi’s position as the single largest shareholder in the emirate’s biggest listed real estate company, as it continues to expand its property investment portfolio, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The additional shareholding came through Alpha Dhabi’s acquisition of an entity already holding shares in Aldar.
The deal has received necessary regulatory approvals, Alpha Dhabi said, without providing any further details.
Alpha Dhabi bought a 12.8 per cent stake in Aldar Properties in April last year from Mubadala Investment Company for Dh3.5 billion ($953 million), with Mubadala remaining a long-term strategic investor in the company with a 25 percent stake, it said at the time.
In January, Alpha Dhabi bought an additional 17 per cent stake in the developer, increasing the size of its stake to 29.8 percent.
Alpha Dhabi completed the deal through the acquisition of Sublime 2, Sogno 2, and Sogno 3, which together controlled 17 per cent of Aldar, it said in a statement at the time.
With the completion of the latest deal, 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 from the second quarter of this year onwards, the statement said.
“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,” Hamad Al Ameri, chief executive of Alpha Dhabi, said.
“As a long-term strategic shareholder, Alpha Dhabi will continue to support Aldar’s management team as they execute its transformational growth agenda.”
Aldar reported a 23 per cent jump in its first-quarter profit, as revenue climbed on the back of record property sales amid continued recovery of the UAE’s property market and expansion of its business.
Net profit for the three months to the end of March climbed to Dh668m as revenue rose 31.5 per cent to Dh2.68bn.
The company’s strong financial performance was driven by its maturing Abu Dhabi business and its diversified asset base.
Aldar, which has added to its land bank in the UAE, has also expanded into Ras Al Khaimah and Egypt as it grows its geographical footprint.
“The macroeconomic environment across the UAE and the region remain strong, supported by a rise in oil prices and with it, sustained economic growth,” Mr. Al Ameri said.
The economic, social, and regulatory policies and initiatives rolled out by the UAE government such as the property ownership laws and the long-term residency visa options are further supporting the real estate market, he said.
“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,” he added.
The move to consolidate its stake in Aldar is in line with Alpha Dhabi’s future expansion strategy. The company seeks to invest Dh8bn in property, hospitality, health care and petrochemicals, and other promising sectors within and outside the UAE.
In January, Alpha Dhabi acquired a 25.24 percent stake in Al Qudra Holding, which focuses on sustainable development and invests in fundamental growth sectors including real estate, services, and hospitality.
Alpha Dhabi announced a strong increase in first-quarter net profit, led by a surge in net income, which increased to more than Dh1.97 billion from Dh100 million the previous year. Its sales increased eightfold year on year to approximately Dh8.2 billion during the January-March period.
