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Aldar to launch $1b realty fund to finance expansion
Aldar Properties plans to launch a $1 billion real estate fund next year and is looking at acquisitions in the US and Europe, its chief executive said on Wednesday.
- Reuters
- Published: 00:33 May 15, 2008
- Aldar, with about $70 billion worth of projects, leads the Abu Dhabi government's drive to develop residential and leisure districts.
- Image Credit: Ravindranath/Gulf News
Abu Dhabi: Aldar Properties plans to launch a $1 billion real estate fund next year and is looking at acquisitions in the US and Europe, its chief executive said on Wednesday.
Aldar will also tap the debt markets further this year to help finance its expansion plans, Ronald Barrott said.
"The first fund is at least nine months away," Barrott said. "We are in the process of structuring the funds... the first will be launched in 2009 with a size of $1 billion plus."
The funds would be for retail, commercial, hospitality and residential offerings.
"We aim to bring new investors into those funds and achieve a sale inside the business enabling us to retain a proportion of the fund," Barrott said.
Asked whether Aldar might expand into Europe or the US, Barrott said it was looking at acquisition and property developments, declining to be more specific.
"Companies and properties are more realistic in value today across the board," Barrott said, without elaborating.
Aldar is stalking some of Britain's biggest property firms, with Hammerson the most likely target, the Times newspaper reported last month.
The property firm, with about $70 billion worth of projects, has been raising funds as it leads the Abu Dhabi government's drive to develop residential and leisure districts in the world's fifth-largest oil exporter.
"We will come to the market for further funds," said Barrott. "We are in a good position... money will cost a little bit more because banks are increasing margins to recover their positions, but we are going to the market and will use various capital markets."
Aldar sold last month Dh3.56 billion in convertible bonds to Mubadala Development and agreed on a $599 million Islamic lending facility from a group of UAE banks.
Standard and Poor's Rating Services assigned the developer an 'A-' long-term and Moody's Investor Services and 'A3' rating with a stable outlook in April.
Shares of Aldar closed 1.7 per cent down yesterday. The stock is up 28 per cent this year, outperforming the market.
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