Dubai PR Network, Online Press Release from Dubai and Middle East
Property & Real Estate(Real Estate & Retail)
Filter PR by
Aldar Investments to Acquire Full Ownership of Etihad Plaza and etihad airways centre in aed 1.2 billion deal
Aldar Investments to Acquire Full Ownership of Etihad Plaza and etihad airways centre in aed 1.2 billion deal

Transaction adds annualised AED 0.1 billion to net operating income

First major acquisition for Aldar Investments

Jassem Busaibe appointed Aldar Investments CEO

Abu Dhabi, 27 February 2019: Aldar Investment Properties LLC (“Aldar Investments”) is pleased to announce that it has agreed to acquire full ownership of Etihad Plaza and Etihad Airways Centre in an AED 1.2 billion transaction with Etihad Airways PJSC (“Etihad”). As part of the deal, Etihad will take 100% ownership of Etihad Airways HQ. The three properties were previously held in three 50/50 joint ventures between Aldar Properties PJSC (“Aldar”) and Etihad (“the JV”). The transaction is expected to complete in Q2 2019.

This is the first major transaction for Aldar Investments which launched in September 2018. Aldar Investments is a wholly-owned subsidiary of Aldar and, upon its creation, became the region’s largest diversified real estate investment company.  On completion, AED 1.2 billion of investment properties and other assets will be acquired by Aldar Investments in exchange for transfer of full ownership of Etihad HQ to Etihad.   As part of the transaction, Aldar will assume existing debt within the Etihad Plaza and Etihad Airways Centre JVs, which will be kept in line with Aldar Investment’s established debt policy to hold 35-40% loan to value. 

The deal adds 789 residential units, 17,940 sqm net leasable area (NLA) of office space and 11,000 sqm NLA of retail space to Aldar Investments’ existing high-quality portfolio. Full ownership of these assets will enable Aldar Investments to recognise annualised annual net operating income of AED 0.1 billion, previously reported as a share of profits from the JV. Aldar Investments will also continue to benefit from a strong tenant base with long leases that provide solid visibility of income.  

Aldar Investments is also pleased to appoint Jassem Saleh Busaibe as its Chief Executive Officer. In this role, Mr. Busaibe will oversee the implementation of Aldar Investments’ strategy through the active management and growth of its high-quality portfolio.  

Jassem Busaibe, Chief Executive Officer of Aldar Investments and Chief Investment Officer of Aldar Properties, commented: “In September, we announced the creation of Aldar Investments to accelerate growth opportunities and unlock value through active management of a diverse portfolio of real estate assets. The acquisition of Etihad Plaza and Etihad Airways Centre allows us to drive value as we take these assets into our larger real estate platform, enabling greater capital efficiency, grow our net operating income and ultimately, free cash flow that can support future dividend growth. The deal continues Aldar’s remarkable start to 2019 and further demonstrates the strength of Abu Dhabi’s real estate market.”

Etihad Plaza is a mid-rise residential development which houses Etihad employees in apartments ranging from one to four bedrooms and is fully leased to Etihad on a long-term lease expiring 2034. It also offers a number of retail units comprising offices and medical facilities for Etihad Airways, and retail and food & beverage units which are leased out to third parties.

Located within one of Aldar’s completed developments in Al Raha Beach, Al Muneera, Etihad Airways Centre comprises predominantly office space and a retail offering. The offices are fully leased to Etihad Airways on a long-term lease expiring 2032. The majority of the ground floor retail units are sublet to retailers such as Carrefour, Jones the Grocer, Style and Smile and Al Wahda Pharmacy, with Etihad Airways occupying the remaining retail space on the ground floor. 

This deal builds on a transformational 2018 for Aldar, when the Group completed three strategic corporate actions. In March 2018 Aldar entered into a strategic partnership with Emaar; then in May last year, Aldar acquired AED 3.7 billion of high-quality assets. This was followed in September by the creation of Aldar Investments, the region’s largest diversified real estate investment company.

On 13th February, Aldar released its full year 2018 financial results, reporting a 2% increase in revenue to AED 6.3 billion, and a 3% increase in net operating income from its recurring revenue assets. Aldar’s net profit was AED 1.9 billion, with gross profit of AED 2.6 billion and development sales of AED 2.6 billion. As a result of these solid results, the Board recommended a 14 fils per share dividend for 2018, representing a 17% increase over 2017 and the sixth consecutive year of growth. 

Posted by : Dubai PR Network Editorial Team
Viewed 7235 times
PR Category : Real Estate & Retail
Posted on : Wednesday, February 27, 2019  12:27:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of
Previous Story : Blueground Tops $28 Million Funding and Continues Exponentia...
Next Story : Emaar honours Fidu Properties with special incentive for sup...
Email this article Print this article

Share this article with your friends and followers
Back to Section Home

Related Stories

Most Viewed Press Release posted in the last 7 days
Autumn/Winter 19: Step out in the latest styles with City Centre Deira and City Centre Mir... [7546-Views]
Restoration by Parmigiani Fleurier -The Yusupov Egg [6216-Views]
Sandro Launches Evening Capsule Collection [5813-Views]
Enjoy Smoother Skin with the current obsession from PMD - The Personal Microdermabrasion R... [5533-Views]
A new model for the ladies enriches the Corum AC-One collection with luscious femininity [5453-Views]
His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum Challenges the City to Be ‘I... [5081-Views]
Energize & Refresh Your Skin With the Foreo Luna 2 for Men [4910-Views]
Saif bin Zayed unveils first floating Smart Police Station [4666-Views]
Save the Children Jordan launches TREE program “Transforming Refugee Education towards Exc... [4380-Views]
Cambridge Assessment English witnesses a huge demand for OET (Occupational English Test) a... [4154-Views]
GITEX hosts global AI expert, international CEOs and honours retail, smart city and startu... [4020-Views]
Aquaplex with an eye on the future expansion of Specification sales, launches new Sales of... [3977-Views]
From Dubai Police's floating police station to Etisalat's Lazareth Flying Motorcycle – ele... [3892-Views]
du, Nokia & SRTIP Sign a Strategic teaming Agreement to Bring Sharjah's Knowledge-Based Ec... [3752-Views]
Hazzaa AlMansoori's return to the UAE is scheduled for Saturday 12th October [3745-Views]
Hazzaa AlMansoori reveals post flight details in a press conference [3739-Views]
Dubai's LIFEPharma signs historic agreement with Apotex Inc., the largest producer of gene... [3532-Views]
One stop shop for classifieds and deals in UAE- [3446-Views]
Hamdan bin Mohammed calls on the city to be ‘In It Together' for the Dubai Fitness Challen... [3428-Views]
6 Ways To Wear The Houndstooth Print [3422-Views]
The new urban warrior unleashed - Corum injects modernity and athleticism into its Admira... [3373-Views]
Al Tayer Battles on in China After Aquabike Setback [3361-Views]
Marks & Spencer Launches Its New Sleepwear Collection for AW19 [3349-Views]
The Coffee Club in Al Bateen, Abu Dhabi re-opens with a refreshed new look [3343-Views]
More than 1,900 beneficiaries at Al Mizhar and Umm Al Sheif Islamic Cultural centres in th... [3343-Views]
RSS Facebook Twitter LinkedDin
Top Sections
Top Stories