UAE-based UPP Capital Investment, Union Properties’ fully owned investment arm, has acquired Aabar Investment’s stake of 5.55% of the total shares of Egypt’s Palm Hills Development.

The transaction was valued at $30m (EGP525.3m), at an average price of EGP4.1 per share. Upon completion of the acquisition, Union Properties’ total stake in Palm Hills Development increased from 10.96% to 16.51% of the company’s total shares.

READ: Dubai's Union Properties buys stake in Egyptian developer

The acquisition is part of the UAE developer’s strategy to enhance its investments abroad, while also diversifying its revenue sources and expanding its business to new markets and sectors, the company said a statement.

Ahmed Yousef Khouri, group CEO of Union Properties, said: “Our acquisition of this significant stake in Palm Hills Development is part of the group’s ambitious plan to strengthen its investment portfolio by acquiring substantial assets that are diverse, dynamic, and successful both inside and out of the UAE, diversifying revenue streams, expanding its business, as well as venturing into new markets.”

Palm Hills Development was established in Egypt in 2005 and focuses on developing residential and integrated commercial developments, small cities, urban communities, and luxury resorts.