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Alpha Dhabi: Two major real estate investments in two days

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In the space of two days, Alpha Dhabi Holding both acquired and increased its stake in Al Qudra Holding and Aldar Properties respectively.

Last week, Alpha Dhabi Holding, a pre-existing, significant shareholder in Aldar Properties, increased its stake in the Abu Dhabi-based developer to 29.8 percent – a 17 percent rise.

Just two days later, the company undertook its second major real estate investment, acquiring a 25.24 percent stake in Al Qudra Holding.

These acquisitions follow on from Alpha Dhabi’s previously announced expansion plan, under which AED 8 billion is pledged to be invested in real estate, healthcare, hospitality and leisure, amongst other mixed-use projects within the UAE and beyond.

“The real estate sector has been witnessing an outstanding recovery during 2021, demand for residential, commercial, hospitality and logistics units continue to grow as a result of the resilience and agility of the country’s post-pandemic strategy,” Hamad Salem Mohamed Al-Ameri, Managing Director and CEO of Alpha Dhabi Holding said.

EXPANDING INTO NEW MARKETS

Last year, Alpha Dhabi undertook one of the largest private purchases of equity in a UAE-listed company via the acquisition of a 12.8 percent ‘strategic stake’ in Aldar Properties. The deal, in which approximately one billion shares were transferred via a block transaction, was estimated to be worth AED 3.7 billion.

According to Al-Ameri, “Aldar’s rapid growth, strategic expansion plan, and projects pipeline represents the right investment for ADH and our shareholders. Aldar’s many projects vary between local, regional and international markets and align with our vision for ADH to explore new markets.”

INCREASING SHAREHOLDER VALUE

The Abu Dhabi-based developer, Al Qudra Holding, announced a merger with Al Tamouh Investments in December 2021.

With the latest acquisition by Alpha Dhabi already underway, the deal with Al Tamouh will be carried out via convertible bonds, totalling a value of AED 2.24 billion. This sum will be converted into Al Qudra’s recently issued share capital.

“We are constantly reviewing our portfolio in line with the Board’s strategic directives and looking at ways in which we can optimize it,” Al Ameri commented. 

“Al Qudra’s business strategy is a perfect fit for ADH, and this acquisition will add considerable shareholder value as we continue investing in carefully selected industries with sustainable growth potential, as the company is active in unique investment opportunities and has facilitated the development of various projects that meet the local and regional market needs.”

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