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Mubadala sells stake in Aldar Properties

Mubadala HQ
Aldar sees a change in shareholders as investment company Alpha Dhabi Holding buys a 12.21 percent stake in the company from Mubadala Investment Company for USD953 million.

Abu Dhabi-based real estate development company Aldar Properties has established itself as one of the major players in the Emirati economy, with the highest market value in the nation’s property sector.

With a market capitalisation of AED29.2 billion, It is seen as a key part of the United Arab Emirates’ efforts to diversify its economy.

CHANGING PLACES

This week it saw a change in shareholders as investment company Alpha Dhabi Holding bought a 12.21 percent stake in the company from Mubadala Investment Company for USD953 million.

It made the purchase through its subsidiary, Sublime Commercial Investment. It is one of the largest ever private share purchases in a UAE-listed company.

Mubadala will remain the single largest shareholder in Aldar Properties, retaining a 25 percent stake. Mubadala, a state-owned sovereign wealth fund, invests on behalf of the UAE government and has stakes in a number of major international ventures.

FAITH IN NATIONAL REAL ESTATE

The transaction represents enormous confidence in the national real estate sector, and in Aldar Properties in particular. It witnessed its net profit grow by 28 percent and its revenue by 19 percent in the fourth quarter of 2020.

The company has seen its portfolio grow substantially in recent years. For instance, it is managing AED30 billion worth of projects in Abu Dhabi alone. Recent projects include redeveloping Yas Mall to add as many as 100 more shops and significantly improve the retail experience.

INTERNATIONAL PROFILE

It is also seeking to diversify geographically. In particular, it has been identifying opportunities in Egypt, the Arab world’s most populous state, and a huge retail estate market. Three weeks ago, Aldar Properties offered to buy a majority stake in the Sixth of October for Development & Investment Co (SODIC), a major Egyptian property developer active mainly in the upscale property market.

This news also comes just months after Aldar revamped its business as a group operating structure to manage its expanding assets.

 

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