Abu Dhabi: Aldar Properties, Abu Dhabi's largest real estate developer by market capitalisation, has sold infrastructure and other property assets on Yas Island to the Abu Dhabi Government for Dh9.1 billion, Shafqat Malek, Aldar's Chief Financial Officer, told Gulf News yesterday.
"This includes roads, utilities on the Yas Island, Yas Marina Circuit which is home to the Formula 1 race track, Yas Marina and the Yas Yacht Club," Malek said.
Aldar on Sunday reported a net profit of Dh1 billion for the financial year ended December 2009.
However, its 2009 net profit fell 70.59 per cent from the previous year's Dh3.4 billion. During the fourth quarter last year, the company showed a net loss of Dh562.9 million.
"The sale will improve Aldar's liquidity position and help the company settle its debts this year of around Dh4.5 billion," said Nabil Farhat, partner with Al Fajer Securities. "They will also have enough cash to complete their projects," he added.
Reduce debt
Another market analyst said the sale would enhance the company's cash flow and reduce its debt.
"No land sales was the main reason for the net loss during the fourth quarter. As well, there were project write-offs of around Dh520 million in the fourth quarter along with pre-opening costs of Dh170 million in our different Yas Island assets," said Malek at the time.
Aldar said the developments to the tune of Dh17.92 billion were under construction and its net assets rose to Dh16.65 billion in 2009.
Difficult year
"Much progress was made in 2009 in what was a particularly difficult financial year. We remain cautiously optimistic about the year ahead," Aldar quoted its Chairman Ahmad Ali Al Sayegh as saying in an earlier statement.
The value of real estate projects being developed by Aldar in the emirate of Abu Dhabi is estimated at $75 billion (Dh275 billion). The entire portfolio is slated to be completed and delivered over a period of seven to 10 years.
Shares of Aldar on the Abu Dhabi Securities Exchange rose marginally to Dh3.87 yesterday in line with broader market sentiments that were positive.
