Aldar Properties launches new steps
Aldar Properties PJSC, Abu Dhabi's leading property development, investment and management company, has unveiled a series of steps designed to solidify the company’s position for long-term, sustainable growth. The measures are focused on addressing current market conditions and on boosting the company’s capital structure. These include the:Recognition of an approximately AED 10.5 billion (US$2.86 billion) impairment charge relating to the value of assets;
Reimbursement and sales totalling AED 10.9 billion (US$2.97 billion) for the transfer of certain infrastructure assets on Yas Island including the recently opened Ferrari World Abu Dhabi theme park, roads, bridges, marine infrastructure, and land. This deal is consistent with an element of Aldar’s business model under which the company has supported the long-term objectives of the Emirate of Abu Dhabi by building and developing strategic assets and transferring them to the Government upon completion;
Placement of a convertible bond worth AED 2.8 billion (US$760 million) with Mubadala Development Company. The issuance of the bond is subject to shareholder approval at an upcoming Extraordinary General Meeting; and,
Sale of residential units and land for AED 5.5 billion (US$1.49 billion) to the Government of Abu Dhabi.
“The financial framework approved by the Board today, including the convertible bond issue, will strengthen our capital structure and provide us with a stable and sustainable platform from which we can continue to capture commercial opportunities to deliver value to shareholders.” said Ahmed Al Sayegh, Chairman of Aldar. “The impairment recognition reflects the adverse conditions that have affected the real estate market, but is an important step in allowing Aldar to achieve long-term sustainable growth.”
Moving forward, Aldar will build on the experience gained as a strategic developer for Abu Dhabi and focus on the creation, ownership and operation of quality residential, commercial, retail, leisure and hospitality, and educational establishments. It will continue to adopt a measured approach to development, adapting to prevailing market conditions.
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