Aldar Properties has announced its acquisition of real estate assets, with a total value of $1bn (AED3.7bn), from Tourism Development & Investment Company (TDIC).
According to Aldar, its agreement with the tourism asset management and development arm of the Abu Dhabi Tourism and Culture Authority is among the largest real estate acquisitions in the history of the UAE.
Aldar’s newly acquired portfolio, located primarily on Saadiyat Island, consists of 14 operating assets in different sectors, including hospitality, retail, residential, education, and infrastructure, as well as a selection of land plots and under-development projects.
The operating assets include the Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, and Westin Golf & Spa, in addition to a number of community retail and leisure assets.
The acquisitions will reportedly deliver an incremental net operating income of approximately $32.7m (AED120m) to Aldar’s Asset Management portfolio on an annualised basis.
The projects under development on Saadiyat Island have a gross development value of $680m (AED2.5bn), while the land, also on Saadiyat Island, is “infrastructure-enabled” and includes approximately 1.1 million square metres of gross floor area, Aldar added.
The acquisition, subject to the fulfilment of certain conditions, is expected to be fully completed by the end of June 2018.
Aldar’s chief executive officer, Talal Al Dhiyebi, said: “Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio. The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought after destinations in the world.
“We believe this landmark acquisition will further advance Abu Dhabi’s real estate sector and accelerate the development of Saadiyat Island, taking it to the next level.”